IVSC Issues Exposure Draft for New Quality Control Standard IVS 107

Posted 20 April 2026 Written by Acts Online
Category Accounting & Auditing

Brought to you by SA Accounting Academy: The International Valuation Standards Council (IVSC) has issued an Exposure Draft proposing substantive updates to the International Valuation Standards (IVS), most notably the introduction of a new general standard, IVS 107: Quality Controls.

The International Valuation Standards Council (IVSC) issued the Exposure Draft on 31 January 2026, seeking to improve the clarity and consistency of valuation risk management. A primary structural change involves the removal of Section 20 (valuation process quality control) from all existing IVSs and the consolidation of these requirements into the standalone IVS 107 chapter within the IVS General Standards.

Under the proposed IVS 107, quality controls are defined as procedures used to mitigate valuation risk, ensuring that valuations are appropriate for their intended use. These controls include:

  • Mathematical and logic checks;
  • Reviews of the appropriateness of valuation approaches and models;
  • Verification of inputs and assumptions; and
  • Assessment of significant areas of professional judgment.

The standard distinguishes these internal quality controls from valuation reviews conducted under IVS 106: Documentation and Reporting. While quality controls are applied throughout the valuation and must be completed prior to report delivery, valuation reviews are typically undertaken by third parties after the issuance of a report.

Technological and Sustainability Integration

The Exposure Draft further proposes enhanced requirements to reflect developments in technology, Artificial Intelligence (AI), and sustainability considerations. These updates aim to strengthen valuation risk management in the context of modern data tools and environmental, social, and governance (ESG) reporting requirements.

The timeline for implementation is as follows:

  • 31 January 2026: Exposure Draft issued for consultation;
  • January 2027: Final edition of the updated IVS to be issued;
  • January 2028: New standards become effective.

Click here to download the 189-page Exposure Draft.

What this means for you, your business, or your clients

  • For yourself: You must distinguish between internal quality control procedures under IVS 107 and post-issuance valuation reviews under IVS 106 to ensure professional compliance during the engagement lifecycle.
  • For your business: Valuation firms will need to update internal standard operating procedures (SOPs) and math/logic check templates to align with the consolidated IVS 107 requirements before the January 2028 effective date.
  • For your clients: Clients will receive valuations with more robust risk management disclosures, particularly regarding the use of AI and the impact of sustainability factors on asset values.

Originally published at https://accountingacademy.co.za/news/read/ivsc-ivs-ed-consultation-re-new-qc-standard

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.