The International Capital Budgeting Institute (ICBI) announced the adoption of new professional reserve study standards effective April 16, 2015. These standards are broken into two sections, known as Generally Accepted Reserve Study Principles and Generally Accepted Reserve Study Standards, These represent the culmination of a year-long effort by ICBI to provide standards for reliable, consistent reserve studies for the community association and timeshare industries. These standards represent the biggest change in the reserve study process in twenty years and will result in better reliability and consistency of reporting in reserves.

Compared to previously existing standards, there are major difference inthe new standards.  ICBI determined that without first establishing the broad conceptual principles that are the foundation of the process, reserve study standards could not be established.

The Generally Accepted Reserve Study Principles provide far more depth to the understanding of the conceptual principles of reserve studies and group the principles into the following subsections to aid in understanding:

General Principles

Component Principles

Calculation Principles

Service level Principles

Reporting Principles

Software Principles

The Generally Accepted Reserve Study Principles give the community association industry the most comprehensive guidance available on reserve studies, and provide for both a concsistency and clarity not previously existing.

Facilities Advisors was proud to be the leader in the development of these principles.