1 AIC – Conference Montreal – May 2009

Standards Update CUSPAP, IVS & IFRS Ray Bower, AACI Louis Poirier, AACI

3 AIC – Conference Montreal – May 2009 Presentation Outline Standards Committee Overview National Standards / Harmonization IVS IFRS What Lies Ahead

4 AIC – Conference Montreal – May 2009 Standards Committee Standing Committee Members Current and Future Tasks

5 AIC – Conference Montreal – May 2009 Standards Committee Four Standards have been developed: Ethics Standard Appraisal Standard Review Standard Consulting Standard Rules provide minimum performance Standards Comments clarify, interpret, explain and elaborate on the Rules, and form an integral part of the Standards; for the purpose of these Standards, their application is compulsory. Practice Notes offer advice, examples and resolution; their application is not compulsory. Definitions form an integral part of the Standards; for the purpose of these Standards, their application is compulsory.

6 AIC – Conference Montreal – May 2009 National Standards / Harmonization End of 2007 through early 2008 AIC and OEAQ (Order) study harmonization. AIC and Order Standards Compared. Study similarities and differences and discuss moving forward with National Standard.

7 AIC – Conference Montreal – May 2009 National Standards / Harmonization Simultaneously, our end goal is to achieve IVS (International Valuation Standards) compliance, while working toward a national standard, and respect provincial rules. This way, anyone provincially compliant is national and international compliant.

8 AIC – Conference Montreal – May 2009 National Standards / Harmonization Step One: Comparison AIC & Order Key Similarities, Differences. Prescriptive vs Descriptive. Internationally more Descriptive. Order and USPAP more Prescriptive. Though Should: Descriptive. Though Shall: Prescriptive Findings presented to respective Boards.

9 AIC – Conference Montreal – May 2009 The Documents Also the Orders Standards

10 AIC – Conference Montreal – May 2009 AIC and IVSC International Standards Valuation Council

11 AIC – Conference Montreal – May 2009 CUSPAP, IVS, IFRS and the Economy. AIC / Order report to Boards A member initiative compares CUSPAP to IVS IFRS key dates are approaching Summer 2008: Economic Meltdown

12 AIC – Conference Montreal – May 2009 Board Motion WHEREAS the AIC Board of Directors has recognized the need for valuation standards that address emerging valuation requirements (IFRS) and diversification of the scope of work available to AIC members…... BE IT RESOLVED that the AIC adopt IVS as their professional standard in sufficient time for full compliance with IFRS by January 1, 2010.

13 AIC – Conference Montreal – May 2009 Present Day Standards IVS Sub-Committee is struck Working Orders IVS Compliancy Document IFRS Best Practices

14 AIC – Conference Montreal – May 2009 Next Steps Exposure Draft finalized and IVS / IFRS compliance directives. Committee to coordinate with standards and education to develop new education components for next CPD cycle. Continue to coordinate with Order. Stakeholder Communication

15 AIC – Conference Montreal – May 2009 Exposure Draft Available on AIC Web site at this link: Key elements of the draft IVS compliancy Additional standards relative to VFR (Valuation for Financial Reporting).

16 AIC – Conference Montreal – May 2009 Exposure Draft

17 AIC – Conference Montreal – May 2009 Exposé Sondage

18 AIC – Conference Montreal – May 2009 Intended Outcome Single National Set of Standards Stakeholder Community with Clear Understanding of Standards Clear Message to International Community Canadian Valuers Become Leaders

19 AIC – Conference Montreal – May 2009 What do you have to do? Review Exposure Draft and Best Practices for Compliancy Implement Necessary Changes Continue to Adhere to CUSPAP with IVS add-ons

20 AIC – Conference Montreal – May 2009 Assembly or Strata?

21 AIC – Conference Montreal – May 2009 Thank You Questions?