Quality control becomes explicit: the proposed IVS 107

Disciplines that markets rely on tend, over time, to make their quality control explicit. Valuation has long had quality-control practice, but much of it has lived inside firms’ own procedures rather than in the standards themselves. The IVS 2028 cycle proposes to change that: a proposed new standard, IVS 107 Quality Controls, would make quality control an explicit, structured requirement. For valuation governance leads, it is the item in the Exposure Draft most worth watching.

From implicit to explicit

A clear account of the proposal’s intent comes from the IVSC’s article on private credit valuation, which explains that the proposed IVS 107 Quality Controls would make quality control an explicit, structured requirement. The context is telling. The article addresses valuing when inputs are non-observable — exactly the setting in which the quality of the process, rather than the abundance of market evidence, carries the weight of the conclusion. In less liquid or harder-to-observe markets, robust valuation governance matters most; a standard requiring that governance to be structured and demonstrable raises the floor for everyone.

Not a standalone change

IVS 107 would arrive alongside revisions across the General Standards. The same article describes proposed revisions to IVS 104 stressing data provenance and scepticism toward management-supplied data; revisions to IVS 105 making clear that judgement stays with the valuer, not the model; and revisions to IVS 106 pushing explicit disclosure of assumptions and of specialists relied upon. Read together, the package treats quality as a chain — governed inputs, governed models, governed reporting — with IVS 107 supplying the framework that holds the links together and makes them inspectable.

The road to 2028

The proposals sit within a defined standard-setting cycle. The IVS Exposure Draft was open for consultation from 30 January to 30 April 2026; the next edition of IVS is to be issued in January 2027 and become effective in January 2028. The draft was prepared by the IVSC’s four technical boards — Standards Review; Business and Intangible Assets; Financial Instruments; and Tangible Assets — follows the 2024 Agenda Consultation, and was introduced by Standards Review Board Chair Susan DuRoss. Industry perspectives on the draft have been aired publicly, including in a ValuAsia Connect webinar on the IVS 2028 Exposure Draft.

Preparing without pre-empting

An exposure draft is a proposal, not a final standard, and governance leads should not implement text that may yet change. But some preparation carries no such risk: existing quality-control procedures mapped onto the current General Standards, so gaps are visible against the framework as it stands; an inventory of the points at which management-supplied data enters valuations, with the corroboration performed recorded; documentation of how model outputs are reviewed and where the valuer’s judgement is exercised; and reports that already disclose assumptions and reliance on specialists clearly. Whatever final form IVS 107 takes in January 2027, none of that work will be wasted — it is simply good governance, made ready to be demonstrated.