Вы находитесь на странице: 1из 20

Philippine Valuation Standards

2nd Edition, 2018


Incorporating the International Valuation Standards 2017 and
Providing Guidance Notes under Philippine Setting
Introduction
The Long Term Commitment of the Philippine Government on
the Land Reform Program:
• Alleviate poverty;
• Sustain economic growth by improving the land tenure security;
• Foster efficient land markets.
Proposed Valuation and Taxation Reforms
REFORM ACTION
Implement a valuation system that will
assess property values at their true
market levels;
The proposed Valuation Reform Act
Establish an independent national (VRA) was watered down by expanding
authority that will set and enforce the BLGF mandate on appraisal instead
valuation standards; of creating the National Valuation
Authority (NVA)
Publication of the Philippine Valuation
Develop valuation standards for use by Standards, 1st Edition 2009 – Adoption
government and private sectors of the IVSC Valuation Standards under
Philippine Setting
Proposed Valuation and Taxation Reforms
REFORM ACTION
Raise the level of and professionalize Enactment of the Real Estate Service
the property valuation industry. Act (RESA) in 2009 intended to
professionalize the real estate practice
by transferring the regulatory functions
of the Department of Trade and
Industry (DTI) to the Professional
Regulation Commission (PRC) through
the Professional Regulatory Board of
Real Estate Service (PRBRES)
Roadmap of the PVS
• Land Administration and Management Project (LAMP) was established.
• Australian Government (technical assistance)
2001 • World Bank (financial support)

• The Philippine Valuation Standards (1st Edition) – Adoption of the IVSC


Valuation Standards under Philippine Setting was published as part of a
2009 wider on-going program of land reform in the Philippines.

• The Philippine Valuation Standards 2nd Edition, 2018 is a component


project of the Technical Cooperation Project (TCP) entitled:
2017 Mainstreaming Voluntary Guidelines on Governance of Tenure (VGGT),
under Food and Agriculture Organization of the United Nations (UNFAO)
The objectives of PVS 2009 included the
following:
To raise the quality of public and private sector valuations and
reporting of valuations;
To provide consistency and understanding between providers
and users of valuations at national and international levels;
To promote transparency and reliability of valuations for
disposal of government assets, financial reporting, secured
lending, transfers of ownership and litigation and taxation;

To reduce financial risk for users of valuations.


PVS Copyright:
• Copyright 2009 by the IVSC; all rights reserved, subject to
permission having been granted to the DOF to reproduce the 8th
edition of the International Valuation Standards (2007)
• No responsibility is accepted by the IVSC for the accuracy of
information contained in the text as republished or translated.
• The approved text of the International Valuation Standards 2017 is
that published by the IVSC in the English language and copies may
be obtained from the IVSC, 1 King Street, London EC2V 8AU,
United Kingdom. Internet: http://ivsc.org.
• Copyright 2017 by the IVSC – November 2017
PVS 2009 CHANGES IN THE STANDARDS

Concepts Fundamental to Generally The generic valuation principles have been carried
Accepted. (GAVP) forward into the IVS Framework. Other Valuation
Principles material discussing market value and land
and property has been merged into Asset Standard
PVS 400 Real Property Interests.
Code of Conduct Removed as a section but discussed under PVS
Framework Section 30.1
Property Type Not directly replicated. Some elements included
in individual asset standards.

Introduction to IVS 1,2,3 Not directly replicated. Some elements included in


General Standards IVS 103 Reporting and 104 Bases
of Value
PVS 2009 CHANGES IN THE STANDARDS
IVS 1 Market Value and IVS 2 Other Bases Discussed at length in General Standards
of Value IVS 104 Bases of Value
IVS 3 Valuation Reporting Principles carried forward into General
Standards IVS 103 Reporting
IVA 1 Valuations for Financial Reporting Now included in Asset Standard IVS 210
Intangible Assets.
IVA 2 Valuations for Secured Lending Now included in Asset Standard IVS 400
Real Property Interests
IVA 3 Valuation of Public Sector Assets for Not directly replicated
Financial Reporting
GN1 Real Property Valuation and GN2 Now included in Asset Standard IVS 400
Lease Interests Real Property Interests
GN3 Valuation of Plant and Equipment Now included in Asset Standard IVS 300
Plant and Equipment
PVS 2009 CHANGES IN THE STANDARDS
GN4 Valuation of Intangible Assets Now included in Asset Standard IVS 210
Intangible Assets
GN5 Valuation of Personal Property No equivalent in new standards. The
definition of personal property in the
previous standards was very broad and
covered many asset classes that are now
the subject of more specific standards. The
previous GN was withdrawn by the IVSB in
February 2010
GN6 Business Valuation Updated standards for business valuation
are in Asset Standard IVS 200 Business and
Business Interests
GN7 Consideration of Hazardous and Toxic Replicated as PVS GN 600 Consideration of
Materials Hazardous and Toxic Substances in
Valuation
PVS 2009 CHANGES IN THE STANDARDS
GN8 Cost Approach and GN9 Discounted Now included in General Standards IVS
Cash Flow 105 Valuation Approaches and Methods
GN10 Valuation of Agricultural Property Replicated as PVS GN 200 Valuation of
types. Agricultural Properties
GN11 Reviewing Valuations Not directly replicated. Made mention in
General Standards IVS 103 Reporting
GN12 Valuation of Trade Related Property Replicated as PVS GN 700 Valuation of
Trade Related Property
GN13 Mass Appraisal Replicated as PVS GN100 Mass Appraisal
for Property Taxation
GN14 Valuations of Properties in Replicated as PVS GN 400 Valuation of
Extractive Industries Properties in the Extractive Industries
IVS 2007 CHANGES IN THE STANDARDS
GN15 Valuation of Historic Property Replicated as PVS GN 500 Valuation of
Historic Property
GN17 Valuation of Investment Property Now included in Asset Standard IVS 410
under Construction Development Property

Addition of PVS GN 800 Valuation for


Compulsory Acquisition
CONTENTS - PVS 2nd Edition, 2018
List of Acronyms
Introduction
• Part I IVS 2017 (En toto) Glossary
• Part II Philippine Context Framework
Focusing on Valuation for General Standards
Taxation and Other • PVS 101 Scope of Work
Purposes • PVS 102 Investigations and Compliance
• Part III Guidance Notes • PVS 103 Reporting
• PVS 104 Bases of Value
• PVS 105 Valuation Approaches and Methods
Asset Standards
• PVS 300 Plant, Machinery and Equipment
• PVS 400 Real Property Interests
• PVS 410 Development Property
• Valuation for Taxation Purposes
CONTENTS - PVS 2nd Edition, 2018
PVS GN100 Mass Appraisal for Property Taxation
• Part I IVS 2017 (En toto)
PVS GN 200 Valuation of Agricultural Properties
• Part II Philippine Context –
Annotations to IVS 2017
PVS GN 300 Reviewing Valuations
• Part III Guidance Notes
PVS GN 400 Valuation of Properties in the Extractive
Industries
PVS GN 500 Valuation of Historic Property
PVS GN 600 Consideration of Hazardous and Toxic
Substances in Valuation
PVS GN 700 Valuation of Trade Related Property

PVS GN 800 Valuation for Compulsory Acquisition


Part II: Philippine Context
Focusing on Valuation for
Taxation and Other Purposes
The contextualization to the Philippine setting was interspersed with the IVS
2007 manuscript which became the 1st Edition of the Philippine Valuation
Standards (PVS) 2009.

For PVS 2017, while IVS 2017 was adopted in toto in the first part, Part II contains
the Philippine Context Focusing on Valuation for Taxation and Other Purposes.

Part II contains contextual discussion to clarify and explain any departure from
the latest IVS considering the recent changes in the Philippines’ legal and
statutory framework. It takes into account existing laws, rules and regulations
pertaining to national and local valuation for taxation and other purposes.
Part III: Guidance Notes
International Valuation Standards (IVS) 2007, which was
adopted by the Philippine Valuation Standards (PVS) 2009
included guidance notes.

Guidance Notes are issues that relate to the application of


the Standards that frequently arise in valuation practice
and from those who use valuation services.

The Guidance Notes provide guidance on specific valuation


issues and how Standards are to be applied in more specific
business and service-providing situations. The Guidance Notes
complement and expand on the Standards and Applications,
with which they have equal importance.
IVS 2007/PVS 2009 included fifteen (15) guidance notes.

In the succeeding editions of IVS, the guidance notes were


removed for various reasons.

Either the elements were carried forward and merged with


other relevant topics/sections or the IVSC produced revised
Technical Information Papers (TIP) on the topics.

After the consultants deliberated on which portions of the PVS


2009 are still valid with regards to valuation practice in the
Philippines, eight (8) guidance notes were prepared and which
form part of the PVS 2017.