FRS 102 is the principal accounting standard under UK GAAP, and it requires many companies to report property at up-to-date values in their accounts. Investment property is generally carried at fair value at each reporting date, while owner-occupied property may be revalued where a company adopts the revaluation model. An accounting valuation from Notting Hill Surveyors provides the independent, professionally supported figures your accountants need, prepared specifically for financial reporting rather than adapted from a sale or mortgage valuation.
Typical triggers include a financial year end at which investment property must be restated at fair value, first-time adoption of FRS 102, a decision to revalue owner-occupied premises, or an auditor requesting independent support for figures already in the accounts. Companies holding London property often find values move significantly between reporting dates, so relying on historic figures can misstate the balance sheet. Directors also instruct us ahead of restructuring, refinancing or intra-group transfers that will flow through the accounts.
We start by agreeing the basis of value, the valuation date and the properties involved with you and, where helpful, your accountants or auditors. We then inspect each property, gather comparable rental and sales evidence, and apply the approach appropriate to the asset, whether an investment method for tenanted buildings or direct market comparison for owner-occupied premises. Draft figures can be discussed before the report is finalised, and we respond promptly to any audit queries raised after delivery.
You receive a formal valuation report identifying each property, the basis of value adopted, the valuation date, the methodology and the evidence supporting our conclusions. The report is addressed for financial reporting purposes so it can be relied upon in preparing the accounts and shared with your auditors. Where a portfolio is involved, we present values property by property together with a summary schedule, making it straightforward for your finance team to post the figures and for auditors to trace them.
Fees for accounting valuations depend on the scope of the instruction rather than a standard rate. The main considerations are:
We provide a clear written fee proposal at the outset, and portfolio instructions are priced to reflect efficiencies of scale.
Valuations for financial statements should be prepared in accordance with the RICS Valuation – Global Standards, known as Red Book Global, which contains specific provisions for valuations used in accounts. Our reports are produced by RICS Registered Valuers, meaning the individual valuer is registered with the RICS and subject to its quality assurance monitoring. For directors and auditors, that translates into demonstrable independence, a documented methodology and figures that will withstand scrutiny at audit and from HMRC where relevant.
Accounting valuations rarely exist in isolation, so we make a point of working constructively with your wider advisory team. We can liaise directly with your accountants on the basis of value and the treatment of individual assets, and we routinely respond to auditor questionnaires covering our independence, competence and approach. Where an audit raises follow-up queries months after the valuation date, we deal with them as part of the original instruction, helping your year end run smoothly rather than stalling on the property figures.
If your company needs property valued for its accounts under FRS 102, contact Notting Hill Surveyors to discuss the assets involved, your reporting date and your timescales. We will explain exactly what is required and provide a fee proposal without obligation.