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IVSC: IVS ED Consultation re new QC standard
- 16 April 2026
- Miscellaneous
- South African Accounting Academy
Summary:
The International Valuation Standards Council (IVSC) has issued an Exposure Draft proposing updates to the IVS, including introduction of a new IVS 107: Quality Controls and enhanced requirements across existing standards, covering the use of AI, technology and sustainability considerations.
Article:
Importantly, it was decided that valuation process quality control was such an important part of the valuation process that it warranted its own chapter within the IVS General Standards. Section 20 on valuation process quality control has been removed in all the IVSs and a new chapter called IVS 107 Quality Controls was created.
Quality controls are processes and procedures used to mitigate valuation risk to ensure the valuation is in accordance with IVS and appropriate for its intended use. Quality controls include things like math and logic checks, reviews of the appropriateness of valuation approaches, valuation models, inputs and assumptions, and any other significant areas of professional judgment in a valuation. These review procedures are performed in conjunction with the valuation, applied throughout the valuation, and completed prior to report delivery. Quality controls contemplated in IVS 107 and conducted during the valuation differ from valuation reviews, which are undertaken after the issuance of a valuation report by a third party. (see IVS 106 Documentation and Reporting section 40)
The deadline for comments is 30 April 2026.
The updates proposed on 31 January 2026 aim to improve clarity, consistency and practical application, strengthen valuation risk management, and reflect developments in technology, AI and sustainability.
The changes proposed in this Exposure Draft are intended to form the basis of the next edition of IVS, which will be issued in January 2027 and become effective from January 2028.
The updates aim to improve clarity, consistency and practical application, strengthen valuation risk management, and reflect developments in technology, AI and sustainability.
Refer to our previous Alert dated 19 February 2026
Access more information at https://ivsc.org/consultations/ivs-exposure-draft-for-consultation-2026/
Click here to download the 189-page Exposure Draft:
https://ivsc.org/wp-content/uploads/2026/01/IVS_effective-31-January-2028-Exposure-Draft-Final.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- Valuations are widely used and relied upon in financial markets and other settings, whether for inclusion in financial statements, for regulatory compliance or to support secured lending and transactional activity.
- The IVS outline a process that can be used in conjunction with other standards, laws and regulations requiring a value.
- The valuer is ultimately responsible for the assertion of compliance with IVS, as well as quality control.
- Valuers should be aware of the latest changes (including proposed amendments) to the IVS.
Relevance to Your clients:
- The valuer is ultimately responsible for the assertion of compliance with IVS, as well as quality control.
- Valuers should be aware of the latest changes (including proposed amendments) to the IVS.