Property Valualtions

Property Valualtions

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Hi,

I have a Ltd company client who owns a small commercial unit that receives rental income.

Do we have to adjust the company accounts each year to take effect of any increase or decrease in the valuation of the property?

Or would the movement in value of the property only be reflected on the sale of the property?

Thanks

Matt

Replies (9)

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By johngroganjga
10th Sep 2014 12:13

As it appears to be an investment property it has to be carried at a current valuation.

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By mattwadz
10th Sep 2014 12:53

Thank you John - so each year he would have to have the property valued externally?

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By Portia Nina Levin
10th Sep 2014 13:07

Once upon a time

In a far off place, accountants used to go to accounting school, before being unleashed on an unsuspecting public, and they learned all about these mythical beasts called accounting standards.

Nowadays in the UK, folk just cannot be arsed.

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By johngroganjga
10th Sep 2014 13:30

It has to be valued but the valuer does not have to be external. In other words the directors can do it themselves.

The accounts have to disclose the identity of the valuers.

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By Portia Nina Levin
10th Sep 2014 13:33

Presumably John

That is some recent requirement?

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By Portia Nina Levin
10th Sep 2014 14:05

That is a relief

For one awful moment there I thought that perhaps it was what SSAP 19 had said in November 1981.

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Replying to gerrysims:
By johngroganjga
11th Sep 2014 09:48

SSAP 19

Portia Nina Levin wrote:

For one awful moment there I thought that perhaps it was what SSAP 19 had said in November 1981.

I am pretty sure it was in SSAP 19 all that time ago.  The FRSSE just repeats the same provisions.  Certainly there is nothing new about it as far as I am aware.

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By TerryD
10th Sep 2014 14:21

If, however, your company is a micro-entity, as defined, and it prepares and files micro-entity accounts, then not only does it not have to revalue the property, it would be illegal to do so.

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