Philosophy and Application Of The International Valuation Standards For Minerals And Petroleum

The author is the leader of the Extractive Industries Task Force of the International Valuation Standards Committee. The Task Force has developed an Extractive Industries section for inclusion in the International Valuation Standards (IVS). The Extractive Industries Guidance Note provides comprehensive standards for valuation of all minerals and petroleum industry property types for all valuation/appraisal purposes. The document is scheduled for release as an exposure draft for public comment by December 2003, then it will be finalized for publication in the IVS in mid-2004. This paper discusses the content and philosophy of the Extractive Industries Guidance Note within the context of the framework of the IVS. It also discusses the international implications and implementation of this IVS addition.