Financial Reporting Property Valuations
Sovereign Valuations is experienced in undertaking property valuations for financial reporting purposes in accordance with Australian Accounting Standards Board (AASB) Standards and International Financial Reporting Standards (IFRS).
The Corporations Act 2001 stipulates a requirement for true and fair financial statements to be prepared and audited. The Australian Securities & Investment Committee (ASIC) monitors compliance of the Corporations Act 2001 and encourages the following with regards to valuations:
Valuations are carried out by unbiased valuers and valuers are periodically rotated by the responsible entity.
Valuations are reasonably current and regular.
Valuations are performed using appropriate methods and assumptions for that asset class.
‘Fair Value’ is assessed in accordance with AASB 13 Fair Value Measurement issued by the AASB and which incorporates IFRS 13 Fair Value Measurement issued by the International Accounting Standard Board (IASB). Fair Value is defined within AASB 13 as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”
Fair Value assessments need to withstand auditing with Auditing and Assurance Standard AUS 526 issued by the Auditing & Assurance Standards Board (AUASB) setting out standards and guidance on auditing fair value measurements and disclosures contained in financial statements.
Other relevant accounting standards to be considered include AASB 16 pertaining to the valuation of lease assets and liabilities, AASB 116 pertaining to property, plant and equipment and AASB 140 pertaining to investment property.
Sovereign Valuations has expertise in providing independent Fair Value assessments across an array of property classes including office, industrial, medical, residential and specialised assets. Our clientele range from small and medium-sized enterprises through to large private and public companies with assets valued ranging from $1 billion plus institutional grade assets to sub $5 million suburban commercial properties.