Red Book Global Standards - supporting high standards in valuation delivery worldwide
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01 July 2024
To ensure trust in our profession, we have opened a consultation to seek feedback on a proposed update to the Red Book Global Standards, a cornerstone of valuation practice worldwide.
First published in 1976, the Red Book is regularly updated to reflect market changes through industry feedback. It is recognised globally as one of the most rigorous sets of standards for valuation and as such, serves as a key reference for global users and stakeholders.
Nick French, Chair, Global Valuation Standards Expert Working Group, said: ‘Red Book valuations provide the quality and public trust that is essential to underpin the business world.’
New International Valuation Standards (IVS) were published on 31 January of this year, featuring a revised structure with an emphasis on ESG factors, data utilisation, and valuation modelling. In response to these changes and the insights gathered from the RICS valuation member survey conducted last year, RICS is now updating the Red Book Global Standards. This update is an important part of our commitment to support high standards in valuation delivery worldwide and future-proof practices in the public interest.
Updating the Red Book Global Standards will not only ensure we are aligned with the updated International Valuation Standards (IVS), it will also help us incorporate the Valuation Review recommendations. In addition, along with undertaking technical updates to all of the VPGA’s, we will also undertake a wholesale revision of VPGA 1 Valuations for Financial Reporting providing valuation guidance in respect of the key International Financial Reporting Standards (IFRS), and in view of the growing importance of the auditor within the valuation process, introduce an additional VPGA 11 - Relationships with Auditors.
To ensure these changes are effective for the industry, we are holding a consultation between 1 July and 2 August 2024, and we invite all RICS members and stakeholders to share their views. The consultation can be found here: Red Book Global (rics.org).
With its focus on practical implementation, this updated edition of the Red Book Global Standards applies the latest international standards and supplements them with additional requirements and best practice guidance. When combined, they provide the highest levels of assurance to promote and maintain public trust in valuation professionalism and quality.
Feedback from expert working group discussions and the consultation will provide valuable information to help shape the final recommendations on the update of the Red Book Global Standards. Once feedback has been received and reviewed, any changes will be finalised and approved by the RICS Knowledge and Practice Committee and Standards and Regulation Board.
The revised Red Book is scheduled for publication in late autumn 2024. There will be a transition period for members and stakeholders to implement changes before it becomes effective on 31 January 2025, in line with IVS.
