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Dear Sir/Madam,
Held to Account
Our recent success in acquiring freehold and leasehold commercial properties reminds us how Accountants need to follow the new accounting procedure when reporting properties in financial statements.
 International Financial Reporting Standards (IFRS) have been compulsory for UK listed companies since the 1 January 2005. We know that the Accounting Standards Board have issued a convergence paper which will mean the removal of all differences between currently accepted UK practices and the new International Standards in the next few years.
Why the Change
- To remove the “fog” from financial statements.
- A single set of enforceable national and international standards.
- To faithfully represent the transactions they purport to represent and account for like transactions in a like way.
- Report volatility when it happens not when the manager chooses to report it.
Opportunities for Accountants and Tax Advisors
- Ability to be ahead of the game with the convergence of reporting standards.
- To provide best advice to clients.
- To provide clarity in reporting.
Chartered Valuation Surveyors can assist in providing valuations. Those particularly important are:
- IAS 16 Property Plant and Equipment
- IAS 40 Investment Property
- IAS 17 Leases (operating or financial)
- IAS 37 Surplus Property.
The RICS operate a strict compliance procedure to deal with such valuations in accordance with their professional appraisal and valuation standards.
This is part of a regular series of topical articles provided exclusively by RDN Chartered Surveyors. If you would like any further information or add your comments please reply to this e-mail or contact Roger Nelson on 0800 902 0466.
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31 Holmesdale Road, Reigate, Surrey RH2 0BJ
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