Advance participates in International Valuation Conference

30.01.2018

On February 14th, 2020, the Hotel Balkan, Sofia hosted an International Evaluation Conference organized by the Chamber of Professional Appraisers. "In order to ensure transparency in the valuation sector and to increase the efficiency of services, it is necessary to establish common principles when drawing up collateral assessments for banks." Participants in the International Assessment Conference united this opinion.

"The updated International Valuation Standards (IAS), which came into force this year, provide the basis for discussion. The members of the Chamber, which represent 75% of the market for valuation services in our country, are open to dialogue, which will help to smooth the differences in the methods of collateral valuation for financial institutions. For the second time, our structure is behind the official translation of IAS into Bulgarian, "said Tsenka Bozhilova, Chair of the Chamber of Professional Appraisers and Managing Partner at Advance.

International Valuation Standards have been developed by the Committee on International Valuation Standards and have been in force since 31 January 2020. They are applied in nearly 103 countries worldwide. Their aim is to increase consumer confidence by creating transparent and consistent evaluation practices.

The role of intangible assets in the preparation of a market valuation of companies is becoming increasingly crucial and decisive, according to experts from the International Valuation Standards Board (IASC). With the development of technology and the globalization of businesses over the last decade, intangible assets have become more valuable than tangible assets.

"In recent years, we have seen the role of intangible assets as part of the value of companies increase. It is therefore of particular importance that the world-class approaches be applied when assessing market value. The scope of the new international standards is in line with these global trends, focusing on intangible assets and non-financial liabilities, "commented Nick Talbot, Chairman of the International Valuation Standards Council

The updated standards provide guidance on the transfer of the importance of non-financial liabilities in the market valuation. An example of this is the assessment of goodwill and the obligations associated with the performance of an activity or service.

The innovations also affect the evaluation of terrains with commercial potential. In determining their value, appraisers must use at least two appropriate methods for appraising property under development as there is "insufficient factual or observable input" to allow one method to draw a reliable conclusion. The valuation of these properties is consistent with the potential for future development. It reflects the current value of the site, the conceptual design, and the costs and risks associated with completing it.

The dynamics of the valuation sector increases the responsibility that falls on the experts in the sector, are firm in the industry. "The growing interest of regulators is a good sign of the evolution of the valuation business. Our task is to exchange good practices and ensure objectivity through professional organizations at the international level, "concluded Tsenka Bozhilova.