Chartered Valuer and Appraiser Programme - Aligning to international best practice

An opinion editorial piece by Mr Eric Teo, Chairman of the Institute of Valuers and Appraisers of Singapore (IVAS) Council and Member of the Professional Board in the International Valuation Standards Council

Posted on 16 September 2016 in Articles

Business Valuation

The Institute of Valuers and Appraisers of Singapore (IVAS or the Institute) was officially set up in 2013 under the auspice of the Singapore Accountancy Commission (SAC), a statutory body of the Ministry of Finance, the Government of Singapore, to advance the business valuation profession. The Institute hopes to achieve this by leading and promoting the performance of business valuers and appraisers in Singapore, to serve the public interest through ethics and professional excellence, education and professional development, and thought leadership and research.

Upon its formation, IVAS joined the International Valuation Standards Council (IVSC) and became a member of the global valuation community. The IVSC currently has 86 member bodies from 56 countries and produces and implements international standards for the profession and the valuation of assets across the world. The IVSC is governed, directed by three boards, the Board of Trustees, Standards Board and Professional Board and advised by a forum comprising its member bodies. The Standards Board issues the International Valuation Standards (IVS) and this provide the framework for the delivery of credible valuations. The Professional Board issues the International Professional Standards (IPS) (which is currently in exposure draft for public consultation) and the IPS provides the framework for suitably trained valuation professionals acting in an ethical manner. The IPS is expected to be finalised and published in the later part of the year. In 2014, I have had the honour to be nominated to serve as a IVSC board member of the Professional Board, and to play a role in this exciting journey of shaping standards of ethics and professionalism for the global valuation profession.

Growing importance of Business Valuation

Business valuation is growing in importance in Singapore and the region and the demand for competent business valuers is increasing. In a survey jointly conducted by IVAS and Ernst & Young in 2014, the market participants highlighted the complexity of valuation as a subject matter and indicated the need for business valuers to receive proper training. In response to this, IVAS decided to develop Asia’s first professional Business Valuation certification - the Chartered Valuer and Appraiser (CVA) Programme. The objective of this programme is to ensure Business Valuation professionals are adequately trained to perform their role competently and professionally.

​The journey began with the formation of a working group comprising industry practitioners and academia formed to establish a Body of Knowledge (BoK) for the competencies required of a Business Valuation professional. The BoK for the Chartered Valuer and Appraiser Programme was crafted in consultation with industry practitioners from the Accountancy, Banking, Legal and Investment communities, and grounded in the competency standards held up by IPS as highlighted earlier. The IPS is a set of standards that governs the behaviour of valuation professionals, through codes and benchmarks for their conduct, capability and competency. It provides the framework for suitably trained valuation professionals acting in an ethical manner and is developed to cover the areas of initial professional development, continuing professional development, and compliance. In developing the programme, IVAS has benchmarked the BoK to the IPS in terms of the professional knowledge, skills, values, ethics and attitudes required of professional valuers. This ensures that the professional standards of individuals who attend the Chartered Valuer and Appraiser Programme are aligned with that advocated by the international standards.

Leading the region in Business Valuation

This Programme will seek to raise the competency, quality and the standard of the business valuers and the profession as a whole, a development that augurs well for the growth of Singapore as a Centre of Excellence for Business Valuation. In February this year, IVAS appointed Nanyang Business School (NBS), Nanyang Technological University, Singapore as the provider for the Chartered Valuer and Appraiser Programme. NBS will be enlisting the help of the academia community and industry professionals to develop the curriculum and content of the programme based on the BoK that IVAS has established. They will also be subsequently involved in the delivery of the programme. IVAS will certify and award those individuals who have completed the programme and who have accumulated sufficient relevant experience, with the Chartered Valuer and Appraiser title.

Going forward, IVAS will continue to be actively involved in IVSC and work with the global valuation community to advocate the adoption of uniform international standards in business valuation. We will contribute in the international space and demonstrate Singapore’s commitment to promote greater consistency in the conduct of business valuation. In addition, through this Chartered Valuer and Appraiser programme, IVAS will seek to broaden the talent pool, deepen the expertise of business valuers, uphold the public trust in the role they perform, and to advance the reputation of the business valuation profession. #

 

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Chartered Accountant of Singapore

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