By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-06-30
What the three main valuation standards actually are, when each applies, and why banks, courts and regulators insist on them. A plain-English guide to IVS, the RICS Red Book and IFRS 13.
The International Valuation Standards, published by the IVSC, define how a professional valuation must be scoped, what bases of value can be used, which approaches (income, market, cost) apply, and what a compliant report must disclose. IVS is the framework regulators worldwide reference, from Saudi Arabia's Taqeem to European authorities. When Assetica prepares a valuation to IVS, it means the purpose, the basis of value, the methods and the assumptions are documented to a standard any professional reviewer can follow.
The RICS Valuation - Global Standards, known as the Red Book, adopt IVS in full and add requirements on valuer objectivity, competence, terms of engagement and quality control. Banks and institutional lenders frequently specify Red Book compliance because it attaches professional accountability to the number. A valuation prepared to RICS standards therefore carries both the IVS methodology and the conduct framework around it.
IFRS 13 is not a valuation methodology but an accounting standard: it defines fair value for financial statements and establishes the fair value hierarchy (Level 1 quoted prices, Level 2 observable inputs, Level 3 unobservable inputs). It governs purchase price allocations, impairment testing and investment portfolio reporting. Auditors test valuations against IFRS 13, which is why financial-reporting valuations must be built with the hierarchy and disclosure requirements in mind from the start.
What is the difference between IVS and the RICS Red Book?
IVS defines how a valuation must be performed and reported; the RICS Red Book adopts IVS in full and adds professional conduct, competence and quality-control requirements on the valuer. Red Book compliance therefore means IVS methodology plus professional accountability.
Is IFRS 13 a valuation standard?
Strictly it is an accounting standard: it defines fair value for financial reporting and sets the fair value hierarchy and disclosure requirements. Valuations used in financial statements must satisfy IFRS 13 while applying IVS-consistent methodology.
Which valuation standard do UAE authorities require?
UAE authorities, courts and banks accept valuations prepared to recognised international frameworks: IVS, the RICS Red Book, and IFRS 13 for financial reporting. What matters is that the report states its standard, basis of value and methodology clearly enough to be tested.