London, Monday, 27 October 2014
Asia-Pacific Economic Cooperation (APEC) Finance Ministers have agreed that all 21 member economies should work towards region-wide adoption of global standards for valuing assets due to the recent huge growth in cross-border transactions.
APEC member economies account for 44% of global trade and 53% of the world’s real GDP in purchasing power parity (PPP) terms, yet approaches to valuing assets vary considerably across the region, as they do around the world. Some APEC economies have established successful valuation principles and standards, but in others the concept is far less developed.
The formal agreement at the annual APEC Finance Ministers’ Meeting in Beijing, China, means public and private sector organisations will work with the International Valuation Standards Council (IVSC) to promote high quality valuation practices and professionals in their economies. The coordinated effort will also include the Asia-Pacific Business Advisory Council (ABAC), valuation professional organisations, experts from industry and other relevant bodies.
Sir David Tweedie, chairman of the IVSC, the independent international standard setter for valuation, said: “For the very first time the need to address the current inconsistencies in valuation between countries has been formally acted upon by one of the world’s leading economic forums, whose members account for nearly half of all world trade.
“Currently, no single set of global standards for estimating the value of assets has been comprehensively adopted across the world. At best this inconsistency creates a barrier to trade; at worst it represents a systemic danger to markets and the global economy. APEC, as a leading economic forum, could promote a region-wide move towards globally accepted valuation standards.”
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