Institute of Valuers and Appraisers Singapore Collaborates with International Valuation Professional Organisations to Develop Intangible Assets Guidelines

Singapore, 28 August 2024 – The IVAS-IVSC Business Valuation Conference 2024 themed ‘Intangible Impact: Unlocking Business Value in the New Economy’, featured 21 speakers and panellists, and saw over 1,000 participants including policymakers, senior business leaders, valuation professionals, Chartered Valuer and Appraiser (CVA) Charter Holders and Associate CVAs. For the first time, the conference jointly organised by the Institute of Valuers and Appraisers Singapore (IVAS) and the International Valuation Standards Council (IVSC), was held in collaboration with the Intellectual Property Office of Singapore (IPOS), coinciding with IP Week @ SG 2024. (Please click here for more information on the conference.)

2        Guest-of-Honour, Ms Indranee Rajah, Minister in the Prime Minister’s Office, and Second Minister for Finance and National Development, announced today that IVAS would be seeking public feedback on the proposed guidelines for the valuation of Intangible Assets (IA) in the first half of 2025.

3        The proposed guidelines will be developed by IVAS in conjunction with several key international Valuation Professional Organisations (VPOs) – the American Society of Appraisers (ASA), the Canadian Institute of Chartered Business Valuators (CBV Institute), and the Royal Institution of Chartered Surveyors (RICS) based in the United Kingdom. Aligned to the International Valuation Standards (IVS), the proposed guidelines are aimed at providing valuers with guidance on IA valuation, to enhance credibility and reliability in valuation reports to support IA transactions.

Updated International Valuation Standards on Impact of ESG  

4        The updated standards, which will take effect on 31 January 2025, will provide investors with a consistent approach to obtaining insights on the value of businesses, enabling them to make informed investment decisions. The standards make it clear that valuations based on Automated Valuation Models (AVM), including those employing Artificial Intelligence (AI), are only compliant if a competent valuer applies professional judgement in the process. This recognises the growing importance of AI while acknowledging the need for competent professional opinions.

5        Mrs Lim Hwee Hua, Chair, Board of Trustees, IVSC said, “In the global economy, accurate and transparent valuation practices are essential for fostering investor confidence, facilitating capital allocation, and promoting economic stability. The International Valuation Standards set a bar for proficiency and professionalism of the valuation profession. As Chair, I am dedicated to steering the profession towards excellence, ensuring that valuation practitioners adhere to the standards, thereby contributing to the stability and growth of the global economy.”

Enhanced Professional Courses - Intangibles Disclosure Framework and Chartered Valuer and Appraiser Programme

6        IVAS, together with IPOS and the Institute of Singapore Chartered Accountants (ISCA), will be launching an online professional development course on the Intangibles Disclosure Framework (IDF) in the fourth quarter of 2024. This course is targeted at professional accountants and will guide them on how IA can be comprehensively disclosed to stakeholders. The IDF was launched by Minister Indranee in September 2023 during IP Week @ SG 2023.

7        IVAS will also refresh the CVA Programme to incorporate content on ESG reporting standards and IA, which will be launched in phases starting from the first half of 2025. The CVA programme, which was jointly developed by IVAS and Nanyang Technological University in 2016, is the national certification for business valuation in Singapore and the first business valuation certification programme in Asia to be benchmarked against international standards. 

8        Mr Lie Kok Keong, Council Chairperson, Institute of Valuers and Appraisers, Singapore, who is also Valuation Leader and Co-Head, Mergers and Acquisitions, PwC Singapore, said, “Business valuers play a crucial role in supporting businesses. IVAS is committed to uplifting the business valuation profession in Singapore and the region, through continual education, industry collaboration, and the adoption of best practices. With the refresh of the CVA programme and professional development courses, IVAS aims to equip our members with knowledge and tools to address ESG and IA-related issues in valuation. This enables them to deliver insightful valuations aligned to the international standards.”

9        At the conference, Mr Lie announced that the VPOs will conduct roundtables with industry stakeholders in the fourth quarter of 2024, to seek feedback on their joint publication, titled ‘Guidance to Management/Client Information Request for Environmental, Social, and Governance Factors in Business Valuations’. This publication supports valuation professionals when they initiate conversations with their clients on ESG factors that might impact the valuation of a business.