Compliance with International Valuation Standards : What does it mean ? Practice Paper : the case of the Netherlands

Almost all financial crises in the world showed a real estate element if it was not the main cause after all, and so did the 2008 financial crisis with subprime mortgages. As a result of that the G 20 concluded : "never again". It meant that Central Banks and Financial Market Authorities started to investigate how to solve the problem and take precautions.In the Netherlands they first of all questioned the auditors. Their defence was that they relied upon valuation reports from certified valuers. Other than that in 2011 the Auditors addressed the problem to the valuers in a management letter.To improve the situation representatives from the Auditors and the valuers sat together and developed 28 recommendations about valuer’s independency, education, scope of work, the valuation itself and quality assurance procedures. The underlying guidance were international standards, from the auditor’s side the IAS and IFRS and from the valuer’s side the IVs and EVS. The recommendations were followed by good practices, examples for both disciplines to help them to interpret the recommendations.The paper will show the recommendations as well as the process at which the Netherlands Register of Certified Valuers was formed.