FINANCIAL REPORTING | PROPERTY VALUATIONS
Fair value reports your auditor can sign off. Prepared to AASB and IFRS standards.
We value property for financial statements across Australia, for funds, companies, not-for-profits and public sector entities. Each report measures fair value under AASB 13 and IFRS 13, identifies the hierarchy level and key inputs, and is dated to your reporting date, so your auditor gets what they need without a round of queries.
We respond to every enquiry within one business day.
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WHO WE WORK FOR
Built for the entities that carry property on a balance sheet.
Property funds and trusts
Investment property held at fair value, with valuations timed to each reporting date and consistent from one period to the next.
Private and listed companies
Investment property under AASB 140 and owner-occupied premises under the AASB 116 revaluation model, from single assets to national portfolios.
Not-for-profits
Land and buildings held for service delivery, including properties with a specialised use for which there is no active market.
Councils and public sector
Fair value of land, buildings and specialised assets under AASB 13 and AASB 116, alongside state requirements such as FRD 103 in Victoria.
Overseas parent companies
Australian property valued for group reporting under IFRS 13, with reports that reference both the Australian and international standards.
Finance teams mid-audit
When an auditor has queried an existing valuation, or a market value report prepared for another purpose needs to be restated at fair value.
WHICH STANDARD APPLIES
Three standards, one question: how is the property held?
The valuation brief depends on how the property is used, the entity’s accounting policy and whether lease arrangements are involved. We work with your finance team or auditor to establish the required valuation basis, reporting date and scope.
AASB 140 Investment Property
Applies to property held to earn rent or for capital growth. Entities using the fair value model measure the property at fair value for financial reporting, with changes recognised in profit or loss. Entities using the cost model must still disclose its fair value.
AASB 116 Property, Plant and Equipment
Generally applies to owner occupied property, such as offices, factories and operational premises. If the revaluation model is adopted, valuations must be frequent enough to ensure the carrying amount does not differ materially from fair value at the reporting date.
AASB 13 Fair Value Measurement
Sets the framework for measuring fair value, including market participant assumptions, highest and best use, valuation techniques and the fair value hierarchy. A property valuation may fall within Level 3 where significant inputs are unobservable.
AASB 16 Leases
Lease arrangements can affect what is being valued. We can assess the fair value of an investment property held as a right of use asset, or provide property value and market rent evidence for a sale and leaseback.
WHAT AUDITORS LOOK FOR
An auditor does not undertake a valuation, they test the evidence behind it.
Auditors test fair value estimates under ASA 540 Auditing Accounting Estimates and Related Disclosures. Our reports clearly explain the valuation method, market evidence and key assumptions to support that review.
Where fair value reports fall short
- A market value report prepared for lending or stamp duty, reused as fair value.
- Highest and best use not addressed.
- The fair value hierarchy level and key unobservable inputs not identified.
- A valuation date that does not match the reporting date.
- No clear line between building improvements and plant on the fixed asset register.
- Assumptions that shift from one year to the next without explanation.
What our reports address
- Fair value as defined in AASB 13, stated as the basis of value.
- A highest and best use assessment against current planning controls.
- The hierarchy level, with the key inputs such as market rent, capitalisation rate and discount rate, and the ranges relied on.
- A valuation date matched to your balance date, including retrospective dates where required.
- Improvements reconciled to your fixed asset register, with building-integral items separated from process plant.
- A consistent methodology across reporting periods, with any change explained.
PORTFOLIOS AND REPORTING
One property or a whole portfolio.
For portfolios and cyclical revaluation programs, we agree a schedule around your 30 June or 31 December balance date, with full valuations on a rolling cycle and reviews in the intervening periods. The methodology stays consistent, so movements in value reflect the market rather than a change of approach.
A signed fair value report
Prepared by a Certified Practising Valuer to Australian Property Institute standards, with fair value as the stated basis of value and the valuation date matched to your reporting date.
A disclosure summary
Fair value, hierarchy level, valuation technique and the key inputs relied on, set out ready for the notes to your financial statements.
A portfolio schedule
Where more than one property is valued, a single schedule of every asset, its value and the key inputs, so movements can be reviewed at a glance.
Audit support from the signing valuer
The valuer who signed the report responds to the auditor directly, so queries are answered by the person who formed the opinion.
Independence and rotation
For registered schemes, ASIC expects valuers to be independent, valuations to be reasonably current and methods suited to the asset class, with valuers rotated periodically. We have no pecuniary interest in the assets we value and are comfortable joining a rotation program.
Information handled securely
The firm is certified to ISO 9001 for quality management and ISO 27001 for information security, so your financial data and property information are handled under audited controls.
HOW IT WORKS
Scope against your balance date
Tell us the properties, the reporting date and the standard you report under. We confirm the scope, a fixed fee and a timetable that works back from your audit deadline. Engaging us six to eight weeks before balance date is ideal.
Inspection and analysis
The valuer inspects the property and reviews the leases, tenancy schedule and fixed asset register. We analyse sales, leasing and yield evidence at the valuation date and apply the technique suited to the asset.
Signed report and audit queries
The report and disclosure summary are issued to you. The valuer who signed the report deals directly with any questions from your auditor.
From scope to sign-off, on your reporting timetable.
BEFORE YOU ENGAGE US
Questions we’re asked.
What is the difference between fair value and market value?
For most property the figure is the same, but the definitions and reporting requirements differ. AASB 13 fair value is based on highest and best use from a market participant’s perspective, and it requires a hierarchy classification and specific disclosures. A market value report prepared for lending or tax will not usually address these, which is why auditors often decline to rely on a report prepared for another purpose.
How often do we need a valuation?
Under the AASB 140 fair value model, investment property is measured at fair value at every reporting date. Under the AASB 116 revaluation model, revaluations must be frequent enough that the carrying amount does not differ materially from fair value. Many entities adopt a full valuation every three to five years, with desktop reviews in between.
Can you value as at our balance date if it has already passed?
Yes. Retrospective valuations use the sales, leasing and yield evidence available at the balance date, not today’s evidence adjusted backwards.
Will our auditor accept the report?
Our reports are prepared by Certified Practising Valuers to Australian Property Institute standards and address the matters auditors test under AASB 13 and ASA 540 Auditing Accounting Estimates and Related Disclosures. They are accepted by external auditors for use in annual financial statements. No valuer can guarantee an audit outcome, but a report that shows its inputs, reasoning and hierarchy classification gives the auditor what they need to rely on it.
Do you value specialised plant and equipment?
Building-integral items such as coolrooms, insulated panelling, HVAC and specialised flooring are included in the value of improvements and reconciled to your fixed asset register. Process plant and machinery calls for a plant specialist, and we can coordinate one so the two valuations fit together without gaps or double counting.
Our parent company reports under IFRS. Can your report be used?
Yes. AASB 13 incorporates IFRS 13 Fair Value Measurement, so fair value measured for Australian reporting is consistent with IFRS group reporting. We can reference both standards in the report.
Can you join our valuer rotation program?
Yes. We regularly take over from incumbent valuers, and we explain any change in methodology or assumptions so movements from one year to the next can be understood.
What does it cost?
Fees are fixed and quoted upfront. They depend on the number and type of properties, their complexity and your timetable. Portfolio and multi-year programs are quoted as a package.
Book the valuation before balance date, not after the auditor asks.
Tell us the properties, your reporting date and the standard you report under. We confirm the scope, a fixed fee and a timetable that works back from your audit deadline.
Not sure whether you need a full valuation or a desktop review? That is exactly the kind of question we are happy to answer before you engage us.