Valuers' support for inflation accounting

Press, 17 April 1980, Page 10

Valuers' support for inflation accounting

PA Wellington The New Zealand Institute of Valuers was pleased to hear the increasing calls for the introduction of current cost accounting in New Zealand from business leaders throughout the country, said the institute’s president (Mr P. Tierney). Mr Tierney, attending

the institute’s annual.Dominion council meeting in Hamilton, said that inflation accounting would result in more meaningful accounting statements to everyone’s benefit. He cited the chairman of the Securities Commission (Mr C. I. Patterson) who was reported recently as saying that inflation accounting in New Zealand might not be far away. “The institute appreciates the importance of realistic market values for property in determining investment and other management decisons,” Mr Tierney said. “Such values can only be determined by a careful analysis of the prevailing

market situation. The in- . stitute warned that simply indexing property values to bring them to more realistic levels is fraught with dangers that may cause more problems than they solve.” Mr Tierney said that the Instiute of Valuers had been in touch, over recent months, with its counterparts in Australia and Britain. “As a result, and in consultation with the Society of Accountants, the institute is now distributing to its members, guidance notes or the way C.C.S. valuations will be undertaken by valuers will be held in the six university cities next month,” Mr Tierney said.