Annual review of Valuations for institutional property holdings
Risk Review of Valuations for financial institutions
Portfolio Valuations associated with Merger’s and Acquisitions
WHY VALUATION REVIEW?
A Valuation Report is perhaps the most important document utilized by the Portfolio Manager to gauge property yield performance. Even the most talented report writers make mistakes and sometimes fail to catch errors and inconsistencies. Incorrect property values expose investors to additional risks and often lead to wrong decisions to purchase, hold, or to sell properties.
The essence of the desktop appraisal review is to investigate, analyze, and verify the logic and procedures used in appraisal reports and to ensure the preparation of competent and thorough reports that result in sound value estimates. If the report does not pass the desktop review, the Portfolio Manager will return the report to the property valuer for further explanation; or in some cases, the PM will order a valuation from another service provider.
Globalization and crossborder transactions require trained and competent professionals. The International Valuation Standards Committee(IVSC) has now established International Valuation Standards(IVS) and these are supported by all countries who adhere to International Financial Reporting Standards (IFRS) - i.e most developed countries. Standards.
At a minimum, valuers must have knowledge of IVS valuation processes and must have an understanding of national and international accounting standards. The enforcement of the valuation standards will ensue through the insistence of the market, legal requirements, and professional organizations that demand ethical and professional performance.