Recent Developments In International Valuation Standards (3ceaa5c5-2f61-48bf-9897-86097ca7bb30)

A number of important international events took place in 2001 in the development and evolution of mineral valuation standards internationally. In Canada, the CIMVal Committee released a draft discussion paper for public and industry comment on principles to guide the development of the planned Canadian mineral property valuation standard. The International Accounting Standards Board (IASB) received comments on its Extractive Industries Issues Paper. IASB will decide whether the financial statements of public mining and petroleum companies will be allowed to provide the value of mineral and petroleum assets on a current value basis instead of an historic cost basis. The author led the Extractive Industries Task Force of the International Valuation Standards Committee (IVSC) in developing its submission to IASB. IVSC intends to develop an extractive industries valuation section for its International Valuation Standards, which could support the planned IASB standard. In Australia, AusIMM has carried out an in-depth review of its highly regarded VALMIN Code. The AusIMM's MICA subdivision organized the VALMIN ‘01 Conference in Sydney, Australia, with a range of international and current issues papers published in the VALMIN ‘01 book. Considerable support for the IVSC initiative was evident at this conference. The results of the review of the extractive industries submissions to the IASB are expected to be released in early 2002. The CMMI Congress in Cairns, Australia in May 2002 is likely to prove to be an important forum for continued discussion of the development and implementation of international standards and qualifications for mineral valuation. The outcomes and implications of these events are discussed.