Accounting draft not finalised

Press, 23 October 1984, Page 38

Accounting draft not finalised

PA Auckland The final draft of the investment property revaluation accounting standard may be "significantly different" from the controversial one circulated last year, according to the incoming president of the New Zealand Society of Accountants, Mr Rex Anderson. More detailed disclosure requirements may be included in the standard. The society’s belief that property investment companies should be able to account for appreciating land values in their financial statements, was reaffirmed by Mr Anderson.

The society had received a number of submissions after the release of ED 29 (the property revaluation exposure draft) and the final draft was unlikely to be available for some months, he said. Apart from more detailed disclosure of realised and unrealised gains on property assets, the society may also move to strip inflation related increases in land values from revaluation calculations. “What we may end up with is recognising prperty companies’ real holding gains — the actual increase in value, less an inflation adjustment.”