Services

 

Real estate valuation for IFRS purposes

International Financial Reporting Standards (IFRS) is a set of international accounting standards that states how certain transactions and events should be reported in financial statements. It is based upon principles rather than hard set rules.

In accordance with new regulation, public and private companies are required to adopt IFRS standards starting from 2017. IFRS and SCOPA principles differ in several ways, and in particular with regard to valuation issues. For real estate organizations and companies that have significant real estate properties on their balance sheet, the move to IFRS could have enterprise-wide implications.

Companies that are planning to apply IFRS will face a number of challenges in relation to the valuation of real estate assets for financial reporting purposes.

At Century21Saudi we are providing property valuation services as per IFRS Standards.

Century21Saudi is providing valuation (as per IFRS standards) for the following Properties:

  • Residential & Commercial Lands
  • Residential Properties (Apartments & Villas)
  • Office Buildings
  • Commercial Centers
  • Shopping Malls
  • Hotels
  • Warehouses and other industrial properties
  • Agricultural Land

 

 

ASSET TYPE

MEASUREMENT AT INITIAL RECOGNITION

MODEL  BASED ON FAIR VALUE

IFRS 9 Financial Instruments

Fair value

For specified financial assets and for particular business models: fair value

IAS 16 Property, Plant and Equipment

Purchase costs + construction costs + costs to bring to the location and condition necessary to be capable of operating in the manner intended by management.

Accounting policy choice: revaluation model

IAS 38 Intangible Assets

Purchase costs + development costs + costs to bring to the location and condition necessary to be capable of operating as intended by management

Accounting policy choice: revaluation model

IAS 40

Investment Property

Cost including transaction costs

Accounting policy choice: fair value

IAS 41 Agriculture

Fair value less costs to sell

Fair value less costs to sell

 

Why Century21:

  1. Highly qualified property appraiser’s team.
  2. Significant experience in property valuation as per IFRS standards
  3. Broad knowledge of working with diverse client base including all leading banks, investment houses, and real estate companies.