Accounting valuation (IAS – IFRS)
A TRUE REPRESENTATION OF ASSETS IN THE BALANCE SHEET
A correct valuation of assets in the balance sheet of companies is a key element from a financial and tax point of view. Auditors require an annual valuation of assets classified as fixed assets, property investments or inventory to fairly determine the net worth of the company at the end of each year. This review of assets can also have consequences from a financial point of view, as the impairment of inventories (a decrease in value) are tax deductible expenses. Similarly, this can happen in the case of possible asset revaluations with the reversal of past impairment.
Tinsa issues valuations that comply with the points set out in the General Accounting Plan, applying the most suitable methodology in each case and the international standards of financial reporting (NIC – NIIF).
This service is not specifically for real estate matters, and is geared towards companies from any sector with property.
WHO IS IT FOR?
THE DIRECTORATE-GENERAL AND FINANCIAL DIVISIONS OF COMPANIES
EXTERNAL AUDITORS, INVESTORS AND FINANCIAL INSTITUTIONS
1. THE SITUATION.
The most common reason for a company to request an accounting valuation from us is that its auditor requires an independent expert to perform a valuation of one of its properties to determine a possible loss of value. Occasionally, the company itself directly takes the initiative of justifying an impairment for tax purposes.
2. OUR SERVICES.
Tinsa issued valuations to determine the fair value, as well as the value in use and net realisable value, depending on the type of property and impairment. The objective was to update the net worth of the asset and give a true representation of the company.
3. THE RESULT.
The report could be submitted to the government to justify a reduction in the Company Tax. When a request is from an auditor, the valuation allows them to perform a clean audit, without reservations or objections of any kind. These are relevant circumstances for investors of companies and for financial institutions.