standards update cuspap, ivs & ifrs
DESCRIPTION
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 PresentationTRANSCRIPT
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AIC – ConferenceMontreal – May 2009
Standards UpdateCUSPAP, IVS & IFRS
Ray Bower, AACILouis Poirier, AACI
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AIC – ConferenceMontreal – May 2009
Presentation Outline
• Standards Committee Overview
• National Standards / Harmonization
• IVS
• IFRS
• What Lies Ahead
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AIC – ConferenceMontreal – May 2009
Standards Committee
• Standing Committee
• Members
• Current and Future Tasks
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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.
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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.
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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.
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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.
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AIC – ConferenceMontreal – May 2009
The Documents
Also the “Order’s” Standards
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AIC – ConferenceMontreal – May 2009
AIC and IVSC
• International Standards Valuation Council
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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
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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.
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AIC – ConferenceMontreal – May 2009
Present Day
• Standards IVS Sub-Committee is struck
• Working Orders
• IVS Compliancy Document
• IFRS Best Practices
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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
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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).
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AIC – ConferenceMontreal – May 2009
Exposure Draft
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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
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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
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AIC – ConferenceMontreal – May 2009
Assembly or Strata?
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AIC – ConferenceMontreal – May 2009
Thank You
• Questions?