A property valuation for financial reporting is an independent, written opinion of the value of land or buildings, prepared so that a business can include or disclose that value in its accounts. Our accountancy valuations cover residential, commercial and investment property, with the basis of value, method, assumptions and market evidence clearly documented.
Sterlingworth Surveyors is a RICS-regulated firm (Firm Registration Number 850747) based in Chessington. Our valuations are carried out by RICS Registered Valuers in accordance with RICS Valuation – Global Standards (the Red Book). We value the property; decisions on accounting treatment remain with you and your accountant or auditor.
An Accountancy Valuation determines the fair value of property assets for inclusion in financial statements and reports.
These valuations are essential for ensuring transparency, accuracy, and compliance with applicable accounting standards.
All valuations are prepared by RICS-qualified valuers and are suitable for professional and regulatory review.
A valuation is usually needed when the accounting framework a business follows requires or permits property to be shown at a current value, or requires that value to be disclosed. Your accountant or auditor will normally tell you when a valuation is due and what it must cover. Common reasons include:
The earlier you instruct us before your reporting date or audit timetable, the easier it is to agree the scope and arrange access.
The purpose, accounting framework, basis of value, valuation date and any assumptions, agreed in writing before we start.
An inspection to record the property’s condition, size, use and the factors that affect its value.
Analysis of comparable transactions, rents and yields that support the figure.
The method used — such as comparison with sales, capitalising rental income or, where appropriate, a cost-based approach — and the reasoning behind it.
A clearly structured report stating the value, the basis, the date, the assumptions and the sources of information relied on, written so that an accountant or auditor can follow how the figure was reached.
Under IFRS 13 Fair Value Measurement, fair value is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date — in other words, an exit price. IFRS 13 sets out how to measure fair value when another standard requires or permits it; it does not decide when property must be held at fair value.
Businesses reporting under UK accounting standards generally follow FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, which has its own requirements for investment property and for revaluing property, plant and equipment. Companies reporting under international standards follow IFRS, including IAS 40 Investment Property.
Before we start, we agree in writing the purpose of the valuation, the accounting framework, the basis of value, the valuation date and any assumptions. That way the report answers the question your accountant or auditor actually needs answered. Every valuation is prepared in accordance with RICS Valuation – Global Standards (the Red Book).
We are valuers, not accountants. We do not advise on which accounting policy to adopt or how a value should be recognised in your accounts; that is a matter for you and your professional advisers.
We provide financial reporting valuations for:
offices, shops, industrial and warehouse units, held as investments or occupied by the business
individual homes and blocks held by companies, funds and other organisations
let buildings valued with regard to the leases and rental income
sites held in the balance sheet, where our development and residual valuation work applies
For a valuation of a business property for another purpose, such as a loan or a purchase, see our commercial property valuation service.
Accountants often need a property value for tax as well as for the accounts. We provide valuations for both of these:
A gain is usually worked out from what was paid and what was received, but in some situations HMRC requires market value instead — for example, when a property is given away or sold for less than it is worth to help the buyer. The valuation may need to be at a past date. HMRC can check a valuation after a disposal, and a clear, evidenced report makes that process easier. Where a property was inherited, our probate property valuation service may also be relevant.
ATED can apply to companies, and certain partnerships and collective investment schemes, that own UK residential property. Whether it applies, and at what level, depends on the property’s value at set valuation dates, and properties have to be revalued periodically. We can provide the valuation; your accountant or tax adviser will confirm the dates and bands that apply.
To value a property for financial reporting, we need to know what the valuation is for and have the facts that affect value. The more of this you can share at the start, the smoother the instruction:
A financial reporting valuation works best when the accountant is involved early. We can take instructions from the entity that owns the property, with its accountant involved from the start, so that the terms reflect what the accounts and the audit require.
During the audit, auditors may want to review the valuation report and understand the approach, the evidence and the assumptions. With the client’s agreement, we can answer their questions directly.
The fee depends on the property and the service you need. Tell us about the property and the reporting purpose, and we will confirm a fixed fee before you instruct us.
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Yes. A valuation prepared by a RICS Registered Valuer in accordance with the Red Book, on terms agreed for the reporting purpose, gives auditors a documented basis, method and evidence to review. Whether the figure is accepted, and how it is used in the accounts, is decided by the business and its auditor.
Yes. Our reports are prepared to withstand professional and regulatory scrutiny.
The report is addressed to the client named in our terms of engagement, usually the entity that owns the property. It is typically used by its directors, finance team, accountants and auditors for the purpose agreed. If another party needs to rely on it, such as a lender, that should be agreed with us in writing.
They are separate definitions from different sources: fair value comes from accounting standards such as IFRS 13, while market value is defined in the Red Book. We agree at the outset which basis your accounts require, and the report states clearly which basis has been used.
Yes. With your agreement we can discuss the scope with your accountant before we start and answer your auditor’s questions about the approach, evidence and assumptions once the report is issued. We cannot advise on the accounting treatment itself.
Yes. We value commercial, residential, investment and development property for financial reporting purposes. Tell us what the business holds, and we will confirm the scope before you instruct us.
Yes, where the purpose requires it — for example, some Capital Gains Tax calculations need a value at an earlier date. We use the market evidence available for that date, and the report makes clear that it is a retrospective valuation.
Yes. We provide valuations for companies and other owners who need to establish whether the Annual Tax on Enveloped Dwellings applies to a UK residential property and at what level. Your accountant or tax adviser will confirm the valuation date to use and the filing requirements.
Tell us about the property, the reporting purpose and your reporting date, and we will confirm the scope and fee before you instruct us. If you need a valuation for another reason, you can see all our RICS property valuation services in one place.
