2. Key changes to the Red Book Global, 2024

Question 1

Why was there a change to the Red Book Global?

Answer 1

“to support high standards in valuation delivery and future-proof practices in the public interest”

Question 2

What are the key changes for the Red Book Global (effective 2025)

Answer 2

• Alignment with the new IVS standards (2025)
• ESG reporting - must consider factors that impact value
• Use of AI
• Revised ordering of VPSs to align with IVS
• A new VPGA 11 relating to relationships with auditors

Question 3

What is the revised ordering of the VPSs to align with IVS?

Answer 3

VPS2 becomes VPS 4 (Inspections)
VPS 3 becomes VPS 6 (Valuation reports) - including ESG
VPS 4 becomes VPS 2 (Bases of value)
VPS 5 splits into VPS 3 (Valuation approaches) and VPS 5 (Valuation methods)