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The valuation of non-financial liabilities project resulted from feedback received during the agenda consultation process conducted by the IVSC in 2017 and 2018. The project has been led by the Business Valuation Board, with support from the Standards Review Board, Tangible Asset Board and Financial Instruments Board. As outlined in the ED, the Business Valuation Boards believe that this ED outlining the draft standard and considerations related to IVS 2017 Section 220 is a critical part of a transparent standard-setting process, consistent with the practices of other standard-setters around the world, such as the IASB and FASB.
To make the IVS more adaptable to future standard-setting, the Boards recognised that most standard-setters engage in targeted improvements to their standards over time, potentially adding or removing paragraphs or entire standards over time in response to market needs. The numbering for standards and paragraphs within IVS is intended to allow greater flexibility in making targeted improvements to IVS over time. IVS 220 represents the first new Chapter since the issuance of IVS 2017.
Depending on feedback received as part of this consultation process, the IVSC Boards would propose issuing a final Standard for IVS 220 in mid-2019, with an effective date no earlier than the 1st of January 2020. As with the entirety of IVS 2017, due to ever changing market conditions, the IVSC will continue to monitor the applicability of IVS 220 during and after the issuance of the final Standard.
Feedback on the proposed new standard "IVS 220 Non-Financial Liabilities" is sought by 1 April 2019.