Value reporting changes sought

Press, 29 August 1984, Page 33

Value reporting changes sought

PA Wellington The New Zealand Society of Accountants hopes to improve reporting of the value of investment properties to company shareholders and the public. The society’s president, Mr Malcolm McCaw, said yesterday pressures in the property market demanded something much better than

“the confused and diverse system of reporting that exists at the moment.” Mr McCaw said that as part of its programme of setting accounting standards, the New Zealand Society of Accountants last year released a draft of a proposed standard for discussion. “It would require properties held for investment

> purposes to be included in t the balance sheet at market value,” he said. > “They should not be subf ject to depreciation, thenvalue should be assessed I annually by independent ; valuers experienced with i the location and type of property involved, and the disclosure of any profit or loss from the valuation should be included in the

income statement.” The varied ways in which major property companies are at present reporting asset values destroyed public understanding and business integrity, Mr McCaw said. “They show marked disagreements on exactly what revaluations represent and how they should be treated.”