UN FAO: Updating of the Philippine Valuation Standards

The Technical Cooperation Project entitled “Mainstreaming Voluntary Guidelines on Governance of Tenure (VGGT): Philippines” is being carried out in partnership between the Government of the Philippines and Food and Agriculture Organization of the United Nations.

The main objective of the VGGT Project is to improve the overall capacity of the Government of the Philippines in providing good land governance by updating the Land Sector Development Framework (LSDF), a 20-year development framework for land tenure governance, with VGGT principles and guidelines. LSDF contains policy directions and long-term strategies in several thematic areas, namely: Public Land Management, Land Administration, Land Information Management, Valuation and Capacity Building.

COMPONENT 2: UPDATING OF THE PHILIPPINE VALUATION STANDARDS

The VGGT Project is composed of several components, one of which is Component 2: Updating of the Philippine Valuation Standards (PVS).

The Component 2 aims to guide how assets should be appraised/valued, and bring greater efficiency to the appraisals/valuations of property for all purposes. It is also expected to enhance the professionalism of the appraisal and assessor professions in the Philippines.

By way of information, the first edition of the PVS issued by the Department of Finance (DOF) in 2009 followed very closely the 2007-International Valuation Standards (IVS). The said IVS has undergone several updates, of which the latest is the 2017-IVS. Therefore, it is timely to update the existing PVS by adopting the latest IVS under the Philippine setting and the existing law on appraisal profession, under RA No. 9646 or the Real Estate Service Act (RESA), which the DOF championed in 13^th Congress.

ROLE OF BLGF

The Bureau of Local Government Finance (BLGF) of the Department of Finance (DOF) is tasked to implement Component 2: Updating of the Philippine Valuation Standards (PVS) of the said VGGT project. Specifically, the BLGF shall be responsible for coordinating, facilitating, and ensuring the efficient implementation of the Updating of the PVS.

ACTIVITIES

Exposure Workshop

Exposure Workshop on the Draft Updated Philippine Valuation Standards (PVS)

The Exposure Workshops on the Draft Updated Philippine Valuation Standards (PVS) were conducted by cluster in Luzon, The Visayas and Mindanao. The Luzon batch was held at The Bayleaf Intramuros Hotel, Manila on August 24-25, 2017 and September 4-5, 2017. It was attended by a total of sixty-eight (68) participants from the national government agencies and private appraisers associations including the banking sector. On the other hand, The Visayas and Mindanao cluster was conducted at Park Inn by Radisson, Davao City on August 29-30, 2017 which was attended by thirty-two (32) participants mostly from BLGF Regional Office and local government units and two (2) from the private sectors.

The workshops aimed to solicit valuable comments and inputs from the participants based on their expertise and mandates of their office.

Topics on Valuation Standards were discussed by international and national technical advisers in order to provide, baseline information on the subject matter. Dr. William J. McCluskey discussed the introduction to Valuation Standards, the objectives of the Workshop and the expectation from the participants. Ms. Marissa Y. Benitez discussed the International Valuation Standards (IVS) General Standards while Mr. Florencio C. Diño II tackled IVS Asset Standards.

The participants were divided into three (3) groups based on the topics on Assets Standards namely: Business and Business Interests/Intagible Assests Group; Plant and Equipment/Real Property Interests/Development Property Group; and Financial Instruments Group. During the break-out groups, comments/inputs and recommendations were solicited from the participants. On the second day, presentation of outputs was made, followed by an open forum for questions and suggestions.

In relation with this, the BLGF will upload the presentation materials in its website and the Revised Timeline for the information of all stakeholders.

The workshops were concluded with the expressed commitment from the participants for support and participation in any future activities

To download the Programme, click here.

Presentation Materials

Exposure Workshop Output dated August 24-25, 2017

Exposure Workshop Output dated August 29-30, 2017

Exposure Workshop Output dated September 4-5, 2017

Workshop Presentation

Revised Timeline