Accounting for investment properties: fair value method favoured over cost model

Abstract

This paper on recent proposals by the Australian Accounting Standards Board (AASB) to significantly reform current accounting practices for investment properties. These proposals are likely to be of interest to the valuation profession, which had some input into their development. Reporting entities will have the option to use the fair value basis for reporting their operating performance and will consequently be looking to valuers for assistance in obtaining reliable market valuations.