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IVSC proposes guidelines for valuing property under IFRS

  • IVSC (International Valuation Standards Council) (lt green) Image

07 Aug 2003

The International Valuation Standards Committee (IVSC) has published a Consultation Paper proposing guidance on the valuation of owner-occupied property under IAS 16 'Property, Plant and Equipment'.

The IVSC's goal is consistent measurement of property that is carried at revalued amount under IAS 16. Click for IVSC Press Release (PDF 41k) and IVSC Consultation Paper (PDF 164k).

John Edge, Chairman of the IVSC said:

Although IAS 16 allows property to be carried at fair value in the accounts, it has no guidance on how to arrive at that fair value. Yet the national accounting and valuation standards in those countries that currently permit revaluation of assets have some significant differences. For example, 'depreciated replacement cost' is defined differently in different countries. Or, in some countries owner-occupied property is valued as if vacant; in others, it is valued on the basis of a capitalised notional lease. This can lead to differing valuation conclusions although all will be reported as 'fair value'.

 

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