Asset Valuation for Financial Reporting

We deal with the mainstream & we specialise in the complex for all asset classes

Home Services Asset Valuation for Financial Reporting

At Preston Rowe Paterson ‘property’ means all forms of real estate and infrastructure, asset, plant, machinery and equipment.

We aim to provide superior property advisory services specialising in consulting, valuation, property and asset management, facilities management, transaction management, as well as property market and economic research.

The first step in providing asset valuations for financial reporting is to properly classify the asset based on the applicable accounting and valuation standards for the type of assets. From single assets to portfolios of assets Preston Rowe Paterson have extensive experience in asset valuation for financial reporting. - Greg Rowe

Essential First Steps

Which Australian (and international if appropriate) Accounting Standards and Valuation Standards do we apply?

 

The Australian Accounting Standards (AASB) and Valuation Standards (IVSC) we monitor and apply include:-

 

 

  • AASB 5 – Non-current Assets Held for Sale and Discontinued Operations;
  • AASB 13 – Fair Value Measurement;
  • AASB 16 – Leases;
  • AASB 116 – Property, Plant and Equipment;
  • AASB 136 – Impairment of Assets;
  • AASB 140 – Investment Property;
  • AASB 1051 – Land Under Roads;
  • AASB S1 – General Requirements for Disclosure of Sustainability-related Financial Information;
  • AASB S2 – Climate-related Disclosures;
  • IFRS (International Financial Reporting Standards);
  • IVSC (International Valuation Standards Council); and
  • State Treasury Guidelines.

 

Our asset, plant and machinery valuation, appraisal and advisory division undertake valuation of all forms of real estate, plant, machinery, furniture, fittings and equipment for financial reporting purposes to meet legislative requirements, accounting standards and valuation standards as they apply to corporate and government market based and specialised operational assets.

 

Fair Value Defined (AASB 13)

 

This Standard defines Fair Value 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.

The standard also defines the transaction, market participants, the price, the application of the doctrine of highest and best use, valuation premise for non-financial assets, valuation techniques and the Fair Value Hierarchy based on Level 1, 2 and 3 Inputs.

Real property asset classes include:

  • Affordable & Social Housing
  • Aged Care Facilities
  • Automotive Related Property
  • Boarding Houses
  • Build To Rent Residential
  • Business Parks
  • Car Dealerships
  • Childcare Centres
  • Data Centres
  • Entertainment Venues – Cinemas, Theatres & Auditorium
  • Extractive Industries & Resource – Based Enterprises
  • Golf Courses
  • Green Energy – Wind Farms, Solar Farms & Pumped Hydro
  • Heritage
  • Heritage Hotel
  • Heritage Office
  • Heritage Retail
  • Heritage Residential
  • Hospitals & Health
  • Hotels (Accommodation) & Resorts
  • Hotels (Pubs), Motels & Caravan Parks
  • Industrial Manufacturing
  • Infrastructure Including Toll Roads, Airports & Shipping Port Facilities
  • Land Lease Residential Development
  • Large Format Bulky Goods Retail
  • Logistics & Industrial, Office/Warehouses & Factories
  • Marinas
  • Medical Centres
  • Metropolitan & CBD Commercial Office Buildings
  • Other Specialised & Alternative Asset Classes
  • Residential Communities
  • Residential Development Project
  • Residential Dwellings (Houses/Apartments/Units)
  • Retail Shopping Centres
  • Retail Shops
  • Retirement Living
  • Rural & Agribusiness Properties
  • Self‑Storage Facilities
  • Service Stations
  • Strata Commercial, Retail, & Industrial
  • Student Accommodation
  • Student Housing
  • Vehicle Storage Facilities

Plant and Machinery Types

  • Airport & Shipping Port Plant & Equipment
  • Farming Equipment
  • Fittings & Equipment
  • Industrial/Factory Equipment
  • Licensed Club Furniture, Fittings & Equipment
  • Hotel Furniture, Fittings & Equipment
  • Mining & Earth Moving Equipment/Road Plant
  • Office Fit Outs & Equipment
  • Resort, Accommodation & Hotel Furniture
  • Transport Equipment
  • Other General Plant & Equipment

The following valuation approaches are adopted by the AASB and IVSC:-

Market Approach:- ‘A valuation technique that uses prices and other relevant information generated by market transactions involving iden­tical or comparable (i.e. similar) as­sets, liabilities or a group of assets and liabilities, such as a business.’

 

Income Approach:- ‘Valuation techniques that convert future amounts (e.g. cash flows or income and expens­es) to a single current (i.e. discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expecta­tions about those future amounts.’

 

Cost Approach:- ‘A valuation tech­nique that reflects the amount that would be required currently to replace the service capacity of an asset (often re­ferred to as current replacement cost).’

Our fundamental business and service principles are knowledge, experience, professionalism and innovation we demonstrate in our daily operations.

 

At Preston Rowe Paterson, we employ highly educated professionals who are committed to delivering an unrivalled level of service.

We provide asset valuation for financial reporting services for an array of clients with different property needs including:-

  • Accountants
  • Affordable Housing Providers
  • Aged Care Providers
  • Auditors
  • Banks & Lending Institutions
  • Church & Religious Groups
  • Co-Operatives
  • Developers
  • Family Offices
  • Finance & Mortgage Brokers
  • Government – Commonwealth
  • Government – Local
  • Government – State
  • Hotel Owners & Operators
  • Hospital & Health Care Providers
  • Infrastructure & Specialist Asset Owners
  • Insolvency & Restructuring Practitioners
  • Institutional Investors
  • Insurance Brokers & Companies
  • Investment Advisors
  • Lessors & Lessees
  • Listed & Private Companies & Corporations
  • Mining Companies
  • Mortgage Trusts
  • National Retailers
  • Non-Bank Lenders – Commercial & Residential
  • Not For Profit Entities
  • Overseas Clients
  • Private Credit & Alternative Capital Providers
  • Private Investors
  • REITS – Listed
  • REITS – Unlisted
  • Renewable Energy Providers
  • Rural Landholders & Agribusiness
  • Solicitors & Barristers
  • Sovereign Wealth Funds
  • Stockbrokers
  • Strata Owners Corporations
  • Superannuation Funds
  • Trustee & Custodial Companies
  • University, School & Education Providers