standards update cuspap, ivs & ifrs

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1 AIC – Conference Montreal – May 2009

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Standards Update CUSPAP, IVS & IFRS. Ray Bower, AACI Louis Poirier, AACI. Presentation Outline. Standards Committee Overview National Standards / Harmonization IVS IFRS What Lies Ahead. Standards Committee. Standing Committee Members Current and Future Tasks. Standards Committee. - PowerPoint PPT Presentation

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Page 1: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Page 2: Standards Update CUSPAP, IVS & IFRS

Standards UpdateCUSPAP, IVS & IFRS

Ray Bower, AACILouis Poirier, AACI

Page 3: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Presentation Outline

• Standards Committee Overview

• National Standards / Harmonization

• IVS

• IFRS

• What Lies Ahead

Page 4: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Standards Committee

• Standing Committee

• Members

• Current and Future Tasks

Page 5: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Standards Committee

• Four Standards have been developed: • Ethics Standard • Appraisal Standard • Review Standard • Consulting Standard

• Rules provide minimum performance Standards • Comments clarify, interpret, explain and elaborate on the Rules, and form

an integral part of the Standards; for the purpose of these Standards, their application is compulsory.

• Practice Notes offer advice, examples and resolution; their application is not compulsory.

• Definitions form an integral part of the Standards; for the purpose of these Standards, their application is compulsory.

Page 6: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

National Standards / Harmonization

• End of 2007 through early 2008 AIC and OEAQ (Order) study harmonization.

• AIC and Order Standards Compared.

• Study similarities and differences and discuss moving forward with National Standard.

Page 7: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

National Standards / Harmonization

• Simultaneously, our end goal is to achieve IVS (International Valuation Standards) compliance, while working toward a national standard, and respect provincial rules.

• This way, anyone provincially compliant is national and international compliant.

Page 8: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

National Standards / Harmonization

• Step One: Comparison AIC & Order

• Key Similarities, Differences. Prescriptive vs Descriptive.

• Internationally more Descriptive. Order and USPAP more Prescriptive.

• Though Should: Descriptive. Though Shall: Prescriptive

• Findings presented to respective Boards.

Page 9: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

The Documents

Also the “Order’s” Standards

Page 10: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

AIC and IVSC

• International Standards Valuation Council

Page 11: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

CUSPAP, IVS, IFRS and the Economy.

• AIC / Order report to Boards

• A member initiative compares CUSPAP to IVS

• IFRS key dates are approaching

• Summer 2008: Economic Meltdown

Page 12: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Board Motion

WHEREAS the AIC Board of Directors has recognized the need for valuation standards that address emerging valuation requirements (IFRS) and diversification of the scope of work available to AIC members…...

BE IT RESOLVED that the AIC adopt IVS as their professional standard in sufficient time for full compliance with IFRS by January 1, 2010.

Page 13: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Present Day

• Standards IVS Sub-Committee is struck

• Working Orders

• IVS Compliancy Document

• IFRS Best Practices

Page 14: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Next Steps

• Exposure Draft finalized and IVS / IFRS compliance directives.

• Committee to coordinate with standards and education to develop new education components for next CPD cycle.

• Continue to coordinate with Order.

• Stakeholder Communication

Page 15: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Exposure Draft

• Available on AIC Web site at this link: www.aicanada.ca/cmsPage.aspx?id=262

• Key elements of the draft

• IVS compliancy

• Additional standards relative to VFR (Valuation for Financial Reporting).

Page 16: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Exposure Draft

Page 17: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Exposé Sondage

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AIC – ConferenceMontreal – May 2009

Intended Outcome

• Single National Set of Standards

• Stakeholder Community with Clear Understanding of

Standards

• Clear Message to International Community

• Canadian Valuers Become Leaders

Page 19: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

What do you have to do?

• Review Exposure Draft and Best Practices for Compliancy

• Implement Necessary Changes

• Continue to Adhere to CUSPAP with IVS add-ons

Page 20: Standards Update CUSPAP, IVS & IFRS

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AIC – ConferenceMontreal – May 2009

Assembly or Strata?

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Thank You

• Questions?