Surveyors consider new valuation standards
To boost the quality of valuations for financial reporting purposes, the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) and Nigerian Institution of Estate Surveyors and Valuers (NIESV), have kick-started a process to standardize and align its proposed ‘Green Book’ with international best practices.
The Nigerian Valuation Standards to be known as ‘Green Book’, which has been under preparation for several months now, was adopted from the International Valuation Standards (IVS) and aimed at instilling public confidence in the valuation process.
Already, the document is undergoing external stakeholders’ consultation inputs and NIESV Lagos branch last week provided a forum for members to voice their opinions on the proposed valuation reporting template under its Mandatory Continuous Professional Development Programme (MCPD).
Lagos State branch chairman, Olurogba Orimalade who set the tune of the programmme, themed, Standardization of Valuation reports in Nigeria is geared towards arriving at a general standard in valuation reporting according to international best practice, and eradicating fears by international affiliated companies especially in the area of technical expertise.
According to him, there has been tremendous pressure on bodies like Securities exchange Commission (SEC), Nigeria Stock exchange (NSE), PENCOM to allow foreign companies to carry out valuation of certain local jobs.
The arguments brought about by some of these companies in Nigeria are that we lack the technical expertise to carry out certain jobs and financial muscle to acquire the necessary technology to carry out key valuation jobs.
“The estate surveyor and valuer more than ever is expected to be at par with the international valuers in service delivery now especially as the Government through the Federal executive council has directed that all companies or entities in Nigeria should make use of only local professionals,” he said.
NIESV President, Dr. Bolarinde Patunola-Ajayi, assured that the institution would keep members abreast with new trends in the profession through MCPD programmes, adding that the current programmes are meant to benchmark with international practice standards.
A board member, and Chairman, Professional Practice Committee (PPC), ESVARBON, Mr. Victor Alonge explained that the ‘Green Book’ would address the shortcomings and general inadequacy in the current template. “It would incorporate Professional Standards (PS) and Valuation Practice Statements (VPS), that all members providing a written valuation would be required to comply with.
“The Green Book” will set out procedural rules and guidance for valuers. It will cover matters relating to ethics and conduct, but also establish a framework for uniformity and best practice in the execution and delivery of valuations,” he said.
He further pointed out that the proposed document would demonstrate to clients that, although there are many valuers who will make different judgments, all work are within a common body of knowledge, application and expression. “Differences will therefore be as narrow as possible, and where they occur they will be reasonable and explicable, not perverse or chaotic.
“When eventually published, it will assist valuers to demonstrate that the profession is regulated, not in a purely bureaucratic sense, but that they perform their task in an organized manner, not maverick or inspirational, that they take care to educate themselves, and that they are subject to discipline, “ Alonge added.
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