IVSC Releases Paper on Investment Property to Seek Feedback and Opinions
The IVSC has released 2 due procedure related documents with an intention to gather feedback on topics pertaining to valuation. While the council has released a discussion related paper based on valuing investment related property (especially with regard to fulfilling the needs of International Accounting Standard 40), another ED (Exposure Draft) has also been issued, which pertains to valuation of specialized assets utilized by public sector companies for delivering service.
The paper on Investment Property is hoping to get views and feedback with regard to valuation of investment property, in view of both IAS 40 and even in a much broader way. The International Valuation Standards Council has announced 2 standards which are related to investment property including, IVS 233 Investment Property under Construction as well as IVS 230 Real Property Interests.
International Valuation Standard 233 was designed as a response to concerns raised by the constituents that appropriate techniques are not being used after the amendment of International Accounting Standard 40 incepted in the year 2008 to ensure that the investment property, which is undergoing construction should be measured on the basis of a fair value instead of cost and only in cases where the value that is fair can be determined in a reliable way.
Some board members are of the opinion that the International Valuation Standard 230 makes it necessary to have a complete different IVS on investment related property.
The discussion related paper released by IVSC seeks feedbacks and opinions on the some of the matters listed below:
If the ‘investment property’ definition utilized in International Valuation Standard 233 should be similar to the one incorporated in International Accounting Standard 40 or whether it might not be appropriate for the purpose of non-financial reporting like, asset or transaction management, since it is very specific to the purpose of accounting instead of valuation.
How few of the items associated or attached to property must be incorporated in the investment property valuations, especially when the intangible asset’s value must be incorporated in the property value interest.
The manner in which the IVSC should promulgate additional guide, for example IVS 233/230 amendments and issuing of guide in Technical Information Paper’s format or any other way.
In addition to this, the IVSC is looking for feedback on several other issues. The last date for receiving comments is 1st of March in 2013.
- Xero Reports Revenue Growth of 36% in the FY 2019
- FASB Provides Financial Institutions with Fair Value Option to Ease through the CECL Transition
- Kraft Heinz Reveals $181m in Accounting ‘Misstatements’
- KPMG Hit with a £6m over Audit of Lloyds Syndicate
- Property Dealer Banned over £5.6m Accounting Failure
- ETL UK Snaps up SRLV Business Advisory and Accountancy Firm
- Government Publishes Draft Regulations on Directors’ Remuneration Policy Changes