Property, plant and equipment are very important tangible assets within a company´s economic and financial lifecycle as they are held as such for using in either the production and/or supply of products and services, nor for leasing, administrative purposes, loan warranties, ecc.
Since these types of assets take part of numerous businesses activities such as manufacturing, operations cycle, investments, ecc. They are very important for managers, investors and shareholders. However, it is estimated that most of human wealth is on Real Estate.
Whereas Real Estate plays a very important role in society as housing is one of the basic human´s basic needs and human right from other hand, there are companies across the world investing upon Real Estate markets. On this regard, IFRS show the best practice for managers, accountants and financial analysts to account investments upon properties.
However, it is not enough for decision makers to recognize the value of these assets for first time but to give them an adequate management in order to:
Yet, companies are able to know what the market value for potential investments upon Real Estate in order to forecast investments in or upon Real Estate for The following purposes:
Investment Property and Valuation
It is important then that Real Estate Valuation is performed according to a defined purpose in order to provide the investors with appropriate valuation conclusion. Valuers play a crucial role on investors decision making assistance by providing transparent, technical and valuations according to the valuation world´s best practices.
Best Practices in valuation are more and more important day by day in order to provide CEOs, investors and public in general with reliable information relating valuation.