Asset Valuation Standards

PM Valuations expert property, plant and equipment valuers continually stay abreast the range of standards and guidelines relating to property, plant and equipment valuations. Following is a summary of some of the most commonly adopted standards relevant to property, plant and equipment valuations;

Australian Accounting Standards

The Australian accounting standards are set by the Australian Accounting Standards Board (AASB) and have the force of law for Corporations law entities under s296 of the Corporations Act 2001. They must also be applied to all other general purpose financial reports of reporting entities in the public and private sectors. A number of Australian Accounting Standards are of significant relevance to property, plant and equipment valuers including the following;

  • AASB 3 – Business Combinations
  • AASB 13 – Fair Value Measurement
  • AASB 116 – Property, Plant and Equipment
  • AASB 136 – Impairment of Assets
  • AASB 140 – Investment Property
  • AASB 117 – Leases

Some Australian Accounting Standards are of lesser significance to valuers but still of relevance in some circumstances are as follows;

  • AASB 5 – Non current assets held for sale and discontinued operations
  • AASB 137 – Provisions, contingent liabilities and Continent assets
  • AASB 102 – Inventories
  • AASB 112 – Income taxes
  • AASB 138 – Intangible assets

Australia and New Zealand Valuation and Property Standards

Australian Property Institute (API) and Property Institute of New Zealand (PINZ) – Australia and New Zealand Valuation and Property Standards – The primary role of the Australian Property Institute and the Property Institute of New Zealand is to set and maintain high standards of professional practice, education, ethics and discipline. The Valuation and Property standards manual sets out the duties, responsibilities and professional standards of members of the Australian Property Institute and of the Property Institute of New Zealand. The most recent edition adopts the International standards and guidance notes of the International Valuation Standards Committee.

International Valuation Standards

About The International Valuation Standards Council (IVSC)

The IVSC is an independent, not-for-profit, private sector organisation.

The objectives of the IVSC are to strengthen the worldwide valuation profession by:

  • Developing high quality international standards and supporting their adoption and use;
  • Facilitating collaboration and cooperation among its member organisations;
  • Collaborating and cooperating with other international organisations; and
  • Serving as the international voice for the valuation profession

The International Valuation Standards 2017 includes the IVS Framework, The IVS General Standards and the IVS Asset Standards approved by the IVSC Standards Board on 15 December 2016 with an effective date of 1 July 2017.

Some of the international valuation standards most relevant to Property, Plant and Equipment Valuers are;

General Standards

  • IVS101 – Scope of work
  • IVS102 – Investigations and Compliance
  • IVS103 – Reporting
  • IVS104 – Bases of Value
  • IVS105 – Valuation Approaches and Methods

Asset Standards

  • IVS200 – Business and Business Interests
  • IVS210 – Intangible Assets
  • IVS300 – Plant and Equipment
  • IVS400 – Real Property Interests
  • IVS410 – Development Property
  • IVS500 – Financial Instruments

More information is available at the International Valuation Standards Council website at

Australian Infrastructure Financial Management Guidelines

The Australian Infrastructure Financial Management Guidelines are set by the institute of Public Works Engineering Australia. Although not commonly used throughout the valuation professional and although not all aspects are in-line with more widely adopted valuation standards, this in-depth manual provides guidelines specifically relating to asset management, financial reporting and valuation of Property, Plant, Equipment and Infrastructure typically owned and managed by Local Government Authorities.

These assets include Road infrastructure including Bridges; Water supply infrastructure including Water treatment Plants, Pumping Stations, Pipework and reservoirs; Sewerage infrastructure including Sewage treatment plants, sewerage reticulation and pumping stations; Parks and Recreation Infrastructure including toilets, shelters and play equipment; Drainage Infrastructure including pipework, pump stations and open channels; Building Infrastructure.