Global valuation standards 2014


January 2014

This new edition of the RICS Valuation – Professional Standards, the Red Book as it has become widely known, is the culmination of a comprehensive review of the content, framework and format of the 2012 and earlier editions. It also includes new material relating to business valuation and intangible assets.

This 2014 edition adopts and is fully compliant with the International Valuation Standards (IVS), which are reproduced as an annex in both hard copy and digital versions. RICS not only embraces these high level valuation principles itself but also supports the adoption and implementation of such universal standards globally. While the RICS Red Book continues to cover in considerable detail the valuation of assets in the form of real estate (land, buildings and interests therein), its coverage extends to all types of asset, including associated liabilities where appropriate.

This edition incorporates a number of significant changes and updates, including its layout and format, to enhance its clarity and ease of use, and to ensure a robust framework for consistency and best practice in the execution and delivery of valuations.

Material that previously appeared in different parts of the 2012 edition has been brought together to improve clarity and avoid repetition.

The Valuation Standards VS 1–6 of the 2012 edition, including the associated Appendices, have been reviewed and incorporated into Global Professional Standards (PS) and Global Valuation Practice Statements (VPS). All members providing a written valuation are required to comply with these Professional Standards and Valuation Practice Statements – in other words, unless stated otherwise, they are mandatory.

The guidance notes included within the 2012 edition have also been reviewed and updated and are now included as RICS Global Valuation Practice Guidance – Applications (VPGA). These Applications focus on the relevance and implementation of the professional standards and valuation practice statements in specific contexts, whether for a particular purpose or in relation to a particular property or asset type. While the applications are primarily advisory in nature, all members are expected to be familiar with them.

Alongside this edition of the Red Book, work has been taken forward to secure that real estate around the world is also measured consistently. Thus RICS is a member of an international coalition, initially comprising 20 founder member organisations, to establish International Property Measurement Standards (IPMS). Such measurement standards will relate to and interconnect with all RICS published material.

Following the publication of IVS 2017, an updated Red Book was subject to consultation in the spring of 2017. The RICS Valuation - Global Standards 2017 will take effect from 1 July 2017 in line with the IVS. See the advance copy.