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Fair value of investment property

Can the director value it

under FRS 102 can the director of a limited company determine the fair value of the investment property or does a third party valuation need to be completed?

each year the director reviews the value in the accounts, the prices of similar property nearby and determines the value for the accounts to be fair.

many thanks 

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By Ruddles
22nd Feb 2018 15:44

If the director has the necessary skills and expertise to assess fair value I don't see why not.

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By johnt27
22nd Feb 2018 15:45

Yes a director is able to perform the FV review. The details of which should form part of the disclosures in the accounts. If you read FRS 102 it's there in black and white :)

If the business is subject to audit then you may want more substantial evidence that the review is truly reflective of market conditions and possibly suggest a 3rd party be involved.

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