Property Valuations for Financial Reporting

PWE Property Consultants & Valuers provides fair value valuations of land and buildings for financial reporting. We act for local governments, public sector bodies, companies, not-for-profit organisations and trusts across the Perth metropolitan area, and every report is prepared by a licensed valuer with over 20 years’ experience.

When a financial reporting valuation is needed

Organisations that carry land and buildings at fair value need those values reassessed often enough that the figures in their accounts stay current. A valuation is typically required:

• for a scheduled revaluation of a property portfolio
• when values have moved materially since the last valuation
• when a property is acquired, transferred between entities or reclassified
• to test whether an asset is impaired
• when an auditor asks for independent support for a carrying amount

Local government

Western Australian local governments are required by the Local Government (Financial Management) Regulations 1996 to carry land and buildings at fair value, and to revalue them whenever fair value is likely to differ materially from the carrying amount, and in any case no more than five years after the last valuation. PWE is a WALGA Preferred Supplier and has valued property portfolios for local governments across the Perth metropolitan area.

How fair value is assessed

Australian Accounting Standard AASB 13 defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. In practice:

• Market approach. Used where there is an active market for the type of property, with value drawn from comparable sales.
• Income approach. Used for leased and investment property, by capitalising net market income.
• Cost approach. Used for specialised assets that are rarely sold, such as halls, depots and community buildings, based on current replacement cost less an allowance for age and obsolescence.

Restrictions on the use or sale of public land are taken into account where they would affect the price a market participant would pay.

What you receive

• A schedule setting out the fair value of each asset
• The valuation approach and the fair value hierarchy level for each asset
• The key assumptions and inputs, in a form your finance team can use in the notes to the accounts
• For buildings valued on the cost approach, replacement cost and remaining useful life
• A signed report by a licensed valuer, prepared with audit in mind

Why choose PWE?

PWE’s three directors are all licensed valuers, each with more than 20 years’ experience, including many years of work for State and local government. We are small enough that the directors do the work themselves, and we are available to answer your auditor’s questions after the report is issued.

We also provide SMSF property valuations and commercial and industrial valuations.

Frequently asked questions

Is fair value the same as market value?

For most property that could be sold on the open market, the two are effectively the same figure. They differ for specialised assets, where there is no market evidence and the cost approach is used.

Can you value a whole portfolio?

Yes. We can stage inspections across a portfolio and deliver the results in a schedule that matches your asset register.

What do you need from us?

Your asset register for the properties, the reporting date, details of any leases, and access for inspections.

Which areas do you cover?

We act for clients throughout the Perth metropolitan area.

Talk to a valuer

Call (08) 9228 9955 or send us a message to discuss your financial reporting valuation.

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