lessons learnt from adoption of ivs by anevar · romanian experience on valuation •privatization...

LESSONS LEARNT FROM ADOPTION OF IVS

BY ANEVAR

Dana ABABEI, ANEVAR President

TIJUANA, October, 2018

ANEVAR National Association

of Romanian Authorised Valuers


ROMANIA – member of European Union


STANDARDS TODAY

• Emerging markets need standards more than any other markets

• Standards will make investors more confident

• Main issue is now enforcing the standards

• Strong and credible professional body

• Make public to believe and defend standards

• Training the valuers and the public

• Involve the law makers


ROMANIAN EXPERIENCE ON VALUATION

• Privatization based on valuation of the companies

• ANEVAR established in 1992 as a fully independent association of valuers in Romania with no Government backing or interference

• Main goal was seeking public recognition

• Organized for valuation of all type of property

• Is only valuer’s organisation in Romania


ROMANIAN EXPERIENCE ON VALUATION

• In 1994 published its own technical standards based on the IVS and TEGoVoFA standards

• In 2003 adopted IVS as a basis of the national standards

• In 2012 the Valuation Law stated that ANEVAR will develop, approve and publish the Romanian Standards for Asset Valuation


ANEVAR TODAY

Covers 5 valuation specialties: • Real property – 3714 individuals

• Business and intangible assets – 1688 individuals

• Machinery and Equipment – 1577 individuals

• Financial Instruments – 38 individuals

• Valuation Review – 119 individuals


ANEVAR TODAY

• Has more than 4100 individual members and 540 corporate members

• Is member of TEGoVA (1994) IVSC(1996) WAVO (founding member)

• Represents Romania in the management board of: • TEGoVA for 12 years

• IVSC for 9 years

• WAVO for 17 years


ANEVAR TODAY

• Develops, approves and publishes: • Technical Standards -SEV

• Guidance Notes - GEV

• Advisory Guidelines - IE

• Since 1995 has own Research Institute on Valuation - IROVAL


ANEVAR TODAY • Publishes: “The Valuation Journal”, “Value- whenever it is”

magazine and Newsletter

• It is present on social media: Web, Facebook and Tweeter


ANEVAR STANDARDS

• ANEVAR is empowered by law as a Valuation Standards Setter in Romania

• The 2018 Standards for Assets Valuation in Romania includes: • Valuation Standards – SEV - mandatory

• Guidance Notes – GEV - mandatory

• Advisory Guidelines – IE - recommended


ANEVAR STANDARDS

• Romanian SEVs incorporate: • all IVSs ,

• some EVSs in the areas not covered by IVSs: • EU Law requirements:

• EVA 5 – Application of Investment Value (worth ) for individual Investors

• EVA7 –Property valuation in the context of the Alternative Investment Fund Managers Directive

• EVA 8 - property valuation and energy efficiency

• EVA 4 Assessment for insurable value and damage


ANEVAR STANDARDS

• ANEVAR developed standards – to harmonize the standards to Romanian Law: • SEV 232 – Valuation of Trade Related Properties

• SEV 400 - Valuation review

• ANEVAR Guidance Notes with the best practice in applying the valuation standards • GEV 500 - Determination of the Taxable value of the buildings

• GEV 630 - Real estate valuation

• GEV 600 - Business Valuation

• GEV 620 - Valuation of personal Property such as machinery, plant , equipment and inventories

• GEV 520 - Valuation for secure lending


ANEVAR ADVISORY GUIDLINES

• Advisory Guidelines – IE – recommended • Valuation of cultural goods

• Intangible assets valuations (IVS-TIP)

• Discounted cash flow (IVS-TIP)

• Cost approach of fixed assets (IVS-TIP)


ANEVAR DOCUMENTS

• Professional Standard (Code of Ethics)

• Principles in line with IVSC and TEGoVA Codes of Ethics • Integrity

• Objectivity, independence, impartiality

• Confidentiality

• Competence

• Professional behavior


WHY IVS?

• IVSs are principle based standards

• IVSs covers real property, business, intellectual property, machinery and equipment, financial instruments

• USPAP is focused on US’ laws

• EVS is focused only on real property


WHY IVS?

• ANEVAR want to be part of a globalised world of valuers

• ANEVAR want to be recognised as organisation that apply universally recognised valuation standards by the investors and public

• ANEVAR don’t want to rediscover the “wheel”


WHY IVS?

• IVSC recommends Valuation Professional Organisations (VPO’S) to develop methodological documents (guidance) in application of IVS

• The IVSs seek to be global standards and cannot cover the specificity of every country

• ANEVAR developed own documents since 2012

• Other countries did the same: UK, Canada, Australia, New Zeeland, Serbia, Russia


WHY IVS?

• IVS can be applied in emerging market economies

• The IVS valuation principles are based on economic laws and are applicable everywhere

• The methodology developed by VPO’s should not be contradictory with IVS

• The standards must be enforced by VPOs and regulators


WHY IVS?

• IVSC – Standard Review Board has a plan to develop other documents to cover important issues in valuation: nonfinancial liabilities, discounting rate, extractive industries, early stage company valuation, biological assets, inventory

• The IVS due process is transparent and comprehensive and the resulted IVSs have more chance to be applied globally

• IVSC has established a good cooperation with IASB to achieve more coherence between IVSs and IFRSs


ANEVAR -15 YEARS OF IVS APPLING

• The association is now recognized by the state and other the stakeholders as public utility association

• ANEVAR are now involved in working groups which solve valuers issues together with theorists and with practitioners at national, regional and European level.

• ANEVAR has, now, enough resources to develop documents (standards or recommendations) in order to harmonize the IVS and local laws.

• Based on 15 years of IVS application experience, ANEVAR is promoting IVS in East European contries


Thank you!

[email protected]


NATIONAL ASSOCIATION OF ROMANIAN AUTHORISED VALUERS

7 Scărlătescu, district 1 Bucharest, 011158, România

tel: +40 21 315 65 64, 05, fax: +40 21 311 13 40

[email protected], www.anevar.ro

lessons learnt from adoption of ivs by anevar · romanian experience on valuation •privatization...

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