The IVSC had previously issued a Guidance Note, GN 12 The Valuation of Trade Related Property and had issued an exposure draft which proposed to update and reissue the guidance as part of its revamped valuation standards, which were ultimately issued in July 2011.
However, the IVSC chose not to finalise the valuation standard on this topic because there were questions whether sufficient guidance on trade related property was already included in other valuation standards, a perceived confusion of a real property interest with a business, and the need to consider the need for specific valuation guidance of this type.
The discussion paper seeks constituent input as to whether it is practical and necessary to define a distinct category of real property for valuation purposes based on the degree to which the buildings or any other structures are specialised, and explores various issues in undertaking such a valuation.
The IVSC is seeking comments on the Discussion Paper by 31 October 2012. Click for: