The collapse of confidence in standards of financial reporting, consequent on the Enron and WorldCom corporations has affected corporate bodies and their advisers, and there are now widespread Governmental pressures for more stringent controls over practice to prevent deception and even fraudulent activities. This in turn puts a renewed pressure on the role of standards and guidance in respect of asset valuation practice, particularly for property appraisals prepared for financial statements where there is an essential need for re-assurance. With the increasing forces of globalisation, the need for supra-national convergence in standards is increased. This lends weight to the ambition for consistent bases of valuation, as a first step towards convergence practice, which still remains a challenge to national and supra-national bodies. Recent notable changes are occurring within the compulsory and best practice guidance given to valuers. The International Valuation Standards Committee (IVSC) and European Group of Valuers’ Association (TEGoVA) are re-issuing revised standards and The Royal Institution of Chartered Surveyors (RICS) in the 5th edition of its ÎRed Book’ has now thoroughly re-written its Mandatory Statements. Some of these revisions are undoubtedly part of the ongoing overhaul of all standards. However, this paper explores to what extent, if any, the changes that are now being manifest are just part of the normal process and how far they are in response to the wider implications of Enron. Through a survey of leading professionals drawn international consultancy firms, professional body representatives and corporate bodies, the paper explores perceptions to the issue. The findings reported indicate that, indeed, the fall-out from Enron is having a pervasive and persuasive effect on the adviser base and, through governmental intervention, on the client base through the pressures being exerted on matters of corporate governance.
