Financial Reporting Valuations

Financial Reporting Valuation Services 

• Financial Reporting Property Valuations

• Fair Value Property Valuations

• Property Asset Revaluations

• AASB 13 Fair Value Valuations

• AASB 116 Property Valuations

• Not-for-Profit Property Valuations

• Commercial Property Valuations

• Specialised Property & Portfolio Valuations

Frequently Asked Questions 

What is a financial reporting property valuation?

A financial reporting property valuation is an independent assessment of the value of land and buildings prepared to assist an organisation with its financial statements, asset registers, audit requirements and other financial reporting obligations.

Property valuations may be required when an organisation measures property at fair value, undertakes an asset revaluation, reviews existing carrying values or requires independent market evidence to support its financial reporting.

Woods Valuation Services prepares independent financial reporting property valuations across Brisbane, the Gold Coast and South-East Queensland for companies, not-for-profit organisations and other property-owning entities.

What is fair value for financial reporting purposes?

Under AASB 13 Fair Value Measurement, fair value is a market-based measurement based on the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date.

For property, the assessment considers the characteristics that market participants would take into account, together with the property's highest and best use where applicable.

This means a financial reporting valuation is not simply an estimate of what the property is worth to its current owner. It considers the property from the perspective of the relevant market and market participants.

What Australian Accounting Standards apply to property valuations?

The applicable accounting treatment depends on the entity, asset and purpose of the valuation. Two standards commonly relevant to property valuations are AASB 13 Fair Value Measurement and AASB 116 Property, Plant and Equipment.

AASB 13 establishes the framework for measuring fair value, while AASB 116 addresses the accounting treatment of property, plant and equipment, including circumstances involving the revaluation of property assets.

Your accountant, auditor or financial reporting adviser should determine the accounting treatment applicable to your organisation. Our role as independent property valuers is to provide the property valuation evidence required for that reporting process.

What is an AASB 13 property valuation?

An AASB 13 property valuation assesses fair value having regard to the principles contained within AASB 13 Fair Value Measurement.

AASB 13 requires fair value to reflect market participant assumptions and seeks to maximise the use of relevant observable inputs and minimise reliance on unobservable inputs. The standard recognises the market approach, income approach and cost approach as widely used valuation techniques.

The appropriate valuation methodology will depend on the property, its use, available market evidence and the particular financial reporting instruction.

What is an AASB 116 property valuation?

AASB 116 Property, Plant and Equipment is relevant to organisations accounting for qualifying property assets under that standard.

Where the revaluation model is adopted, AASB 116 requires revaluations with sufficient regularity to ensure that the carrying amount does not differ materially from the amount that would be determined using fair value at the end of the reporting period.

An independent property valuation can provide the market evidence and valuation analysis required to support this process.

How often should property be revalued for financial reporting?

There is not necessarily a single revaluation interval appropriate for every property.

Under AASB 116, the frequency of revaluation depends on changes in the fair value of the assets. Assets experiencing significant or volatile changes may require more frequent valuation, while assets with relatively minor movements may require revaluation less frequently. The standard notes that some assets may require annual revaluation, whereas for others a three- or five-year interval may be sufficient.

The appropriate timing should be determined in conjunction with your organisation's accountant or auditor and its applicable financial reporting requirements.

Do not-for-profit organisations need property valuations?

They can.

Not-for-profit organisations that own land and buildings may require independent property valuations for financial reporting, asset revaluation, audit, governance or internal reporting purposes, depending on their circumstances and applicable reporting framework.

Woods Valuation Services can assist not-for-profit organisations with the valuation of commercial, community and other property assets across Brisbane, the Gold Coast and South-East Queensland.

Can you value property for charities and community organisations?

Yes. We can provide independent property valuations for charities, associations, community organisations and other not-for-profit entities where property values are required for financial reporting or governance purposes.

The appropriate methodology depends on the property itself. Some assets have readily observable market evidence, while specialised properties may require different valuation considerations.

Can you provide valuations for companies and corporate property owners?

Yes. Woods Valuation Services provides independent property valuations for companies and corporate property owners requiring property values for financial reporting, asset revaluation, audit support, board reporting or internal governance purposes.

We can liaise with your finance team, accountant or auditor where necessary to establish the valuation instruction and reporting requirements before commencing.

Can the valuation be used by our auditor?

Our financial reporting valuations can be prepared with the organisation's audit and financial reporting requirements in mind.

Where an auditor has particular requirements, assumptions, reporting dates or information requests, we recommend providing these at the beginning of the valuation process.

We can also respond to reasonable valuation-related queries concerning the methodology, market evidence and assumptions adopted within our report.

What types of property can be valued for financial reporting?

Woods Valuation Services can assist with a range of property assets, including:

• Commercial offices

• Retail properties

• Industrial properties

• Warehouses and business premises

• Investment properties

• Residential property assets

• Vacant and development land

• Mixed-use properties

• Community and not-for-profit property

• Specialised property, subject to the nature of the asset

For organisations with multiple properties, we can also discuss portfolio valuation assignments covering several assets under a single instruction.

How is a property valued for financial reporting purposes?

The valuation methodology depends on the nature of the property and the available market evidence.

AASB 13 recognises three widely used valuation techniques: the market approach, income approach and cost approach. The appropriate approach, or combination of approaches, depends on the circumstances and the information available.

For example, a conventional commercial investment may be assessed using market sales and income-based evidence, while a specialised property may require different considerations.

Our reports explain the methodology, evidence, assumptions and reasoning supporting the adopted valuation.

What information is required for a financial reporting property valuation?

The information required will depend on the property and reporting instruction, but commonly includes the property address, ownership details, valuation date, financial reporting purpose and relevant property information.

For commercial properties, we may also request leases, tenancy schedules, plans, outgoings information and other documents relevant to the valuation.

If your accountant or auditor has provided specific valuation instructions or reporting requirements, these should also be supplied at the commencement of the assignment.

Can you value multiple properties as part of one financial reporting assignment?

Yes. We can undertake multi-property and portfolio valuations for organisations holding several property assets.

Where multiple properties are required, we recommend providing an asset schedule containing the property addresses, asset descriptions, required valuation date and any relevant accounting or reporting information.

We can then provide a consolidated quotation and establish an efficient inspection and reporting program.

Do you provide financial reporting valuations in Brisbane?

Yes. Woods Valuation Services provides financial reporting property valuations throughout Brisbane and the Greater Brisbane region, including valuations for companies, not-for-profit organisations and other property-owning entities.

We value commercial, industrial, retail, residential and other property assets for financial reporting, fair value and asset revaluation purposes.

Do you provide financial reporting valuations on the Gold Coast?

Yes. We undertake financial reporting and fair value property valuations across the Gold Coast, including commercial, industrial, retail and other property assets.

For organisations with properties across both Brisbane and the Gold Coast, multiple assets can be incorporated into a broader portfolio valuation instruction.

How much does a financial reporting property valuation cost?

Fees depend on the property type, complexity, location, number of assets and reporting requirements.

A straightforward single-property valuation will generally require a different scope from a specialised property or multi-asset portfolio.

Provide us with the property details, required valuation date and purpose and we can provide a fixed-fee quotation before commencement.