Professional Valuation Organizations Urge Broad Support of Universal Standards For Market Value Financial Reporting
28 October 2003 - 10:54AM
PR Newswire (US)
Professional Valuation Organizations Urge Broad Support of
Universal Standards For Market Value Financial Reporting CHICAGO,
Oct. 27 /PRNewswire/ -- An international coalition of valuation
organizations is urging government entities and other official
standards- setting bodies to adopt market value financial reporting
standards designed to protect the public, government programs and
business decision makers. The International Summit on Financial
Reporting, held in Toronto, Canada, on October 21-23, 2003,
featured discussions among such organizations as the International
Accounting Standards Board, Canadian Accounting Standards Board,
and Financial Accounting Standards Board (US), preparers and users
of financial reports and representatives of the valuation
profession. At a meeting held immediately following the Summit,
leading valuation organizations unanimously urged broad support for
the accelerated adoption of standards for market value reporting of
fixed and intangible assets through the signing of the Toronto
Valuation Accord (Accord). According to the organizations, recent
world events have clearly highlighted a need for increased
disclosure in financial reporting. Market value is critical to a
best practices approach to financial reporting. For this reason,
the Accord participants called for an accelerated adoption of
standards for market value reporting of fixed and intangible
assets. "The need to adopt 'fair value' financial reporting
worldwide is more urgent than ever," said senior officials of
leading North American professional valuation organizations. The
officials went on to say, "Corporate worth lies not only in
operations and financial instruments like stocks and bonds, but
also in the value of the entity's fixed and intangible assets.
Market value provides the best reflection of the integrated
financial health of a corporation in relation to the current market
and therefore sets the stage for better disclosure to and decisions
by all stakeholders." The rationale behind the Accord was to
emphasize the benefits of independent, reliable, consistent and
well-supported disclosures of market value in financial reporting.
Also, the recent movement toward convergence and harmonization via
international standards, and the related emphasis on market (fair)
value, increases the responsibilities of valuers in North America
and worldwide to participate in the establishment of reporting
standards for the benefit of the users of financial reports and the
public at large. "The move toward market value in financial
reporting is in the best interest of the public, investors,
government, and business decision makers," stated representatives
of the associations. "In an environment of increasing investor and
regulator demand for relevant, timely, and objective reporting, the
development of an independent market value opinion of assets is
part of the solution to transparent financial reporting." The
Accord calls for the professional valuation organizations to take
immediate steps to coordinate their efforts to work jointly with
legislative and regulatory bodies, standards-setting groups, and
other professions to aid in expediting the simplification and
convergence of financial reporting standards. Furthermore, the
organizations agreed to continue actively supporting the efforts of
the International Valuation Standards Committee and emphasizing the
efforts of financial reporting standards boards. "Valuation
professionals are highly qualified, independent professionals with
long-established and accepted practices, standards and
methodologies and therefore should be recognized as the preeminent
providers of valuation for financial reporting services," the
organizations concluded. For more information regarding the
International Summit on Financial Reporting, contact Alison
Gerlach, Manager of Special Projects, Appraisal Institute, at
312-335-4116 or . For additional information on the other
professional valuation organizations involved, contact the
following: American Society of Appraisers Edwin W. Baker Executive
Vice President T 703-733-2109 Centre for Advanced Property
Economics Michael Hill, ASA Board Member T 713-771-5011 Appraisal
Institute of Canada Georges Lozano Chief Executive Officer T
613-234-6533 Royal Institution of Chartered Surveyors - USA Royal
Institution of Chartered Surveyors - Canada Matthew Bruck RICS
Americas General Manager T 917-368-8116 The Appraisal Foundation
David Bunton Executive Vice President T 202.347.7722 DATASOURCE:
Appraisal Institute CONTACT: Vanetta Anderson, Public Relations
Coordinator of Appraisal Institute, +1-312-335-4441, Web site:
http://www.appraisalinstitute.org/
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