IVSC project aims to improve mining valuation guidance
The International Valuation Standards Council (IVSC) has announced the launch of a new project designed to provide greater valuation guidance to the mining, oil and gas industries. The adoption of International Financial Reporting Standards during recent years has exposed many inconsistencies in how the values of mineral reserves and resources are being estimated around the globe, causing concern for financial regulators, auditors and investor groups.The IVSC’s project will gather views from all interested parties on the wide range of practices currently used in order to help determine the form and content of a future valuation standard. The project will be led by IVSC Standards Board member, and Deloitte Americas Valuation Services leader, Jeffrey Harder.Harder explains: “While there have been various initiatives in the extractive industries to agree internationally accepted classification systems for mineral reserves and resources, there are no equivalent standards for valuing those assets. Our project aims to identify a consensus from within the industry as to best practice and then make sure that this is promulgated and understood by both valuation practitioners and those who rely on the valuations.”A Discussion Paper is being widely distributed to industry participants and can be downloaded from the IVSC’s website, www.ivsc.org/~ivscorg/workplan/extractive-industries. Comments are welcomed before mid-October.