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John Bridal Associate Director, UBC Real Estate Division May 30, 2009

Preparing for IFRS: Learning and Adapting. John Bridal Associate Director, UBC Real Estate Division May 30, 2009. Presentation Outline. How should appraisers prepare for IFRS? Terminology & Technicalities Practice Questions & Timeline Sources of Work & Challenges

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John Bridal Associate Director, UBC Real Estate Division May 30, 2009

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  1. Preparing for IFRS: Learning and Adapting John Bridal Associate Director, UBC Real Estate Division May 30, 2009

  2. Presentation Outline How should appraisers prepare for IFRS? Terminology & Technicalities Practice Questions & Timeline Sources of Work & Challenges Networking & Self-Promotion Continuing Education

  3. GAAP & IFRS Terminology • To communicate on IFRS, appraisers must know accounting lingo • Acronym Soup! • GAAP, IFRS, IAS, PAE, GBE, GBTO, PP&E • ETC, ETC, ETC

  4. Questions awaiting answers • Practice Questions for Canadian IFRS Implementation • Who will likely complete valuation work? • How often will real estate assets be re-valued? • Who will be the clients? • What is volume of potential business? • Quantity and Timing of Workflow • PP & E versus Investment Property • Other requirements: business combinations, impairment • Geographic distribution

  5. Timeline for IFRS in Canada • FYs ending Dec 31st means reporting under IFRS beginning Jan 1, 2011 • FYs ending March 31st means reporting under IFRS beginning April 1, 2012 • PAEs must collect data in 2010 for comparative statements under IFRS CICA Jan 2009 IFRS Update

  6. Valuation Possibilities • Examples of emerging valuation work • New clients • Business combinations • Impairment • Unique assets • Risk analysis

  7. Appraisal Challenges • Potential Challenges: • Land/Improvement allocation • Client pressure to cut costs and limit scope • Inspection / due diligence / use of update factors • Standards concern: threats to valuation credibility • Pressure to regionalize / nationalize independent firms • Appraiser capacity: too much work?

  8. “Accounting for Change” • Valuation Insights and Perspectives (2002) • Network, network, network. • Get familiar with the technical rules. • Meet the accountants. • Take a lawyer to lunch (mainly one who does business combinations like mergers and acquisitions) • Seek out business brokers. • Attend a seminar: AIC, AI US, or other • Call your favourite portfolio manager.

  9. How Can Appraisers Prepare? • Self Promotion: • Update your firm’s website – show you are ready for new business! • Watch for MERX and Provincial bid requirements related to Government-Based Businesses (GBEs/GBTOs) • Build stronger links with accounting professionals in public practice and within specific industries

  10. How Can Appraisers Prepare? • Accounting Sources of Continuing Education • Self-study through CICA or CGA continuing education • Big 4 websites: KPMG, PWC, Ernst & Young, Deloitte • Subscribe to CICA web alerts on IFRS – keep current • Network with local accounting professionals

  11. How Can Appraisers Prepare? • AIC / UBC Education: • CPD 114: Valuation for Financial Reporting – Real Property Appraisal and IFRS • Developed by UBC on behalf of AIC • Webinar offering Friday June 5th, 2009 • 11am-1pm EST / 8am-10am PST • Self-study offerings any time, at your own pace • Enroll in the AIC IFRS sequel to Lesson 1 scheduled for 2009 - 2010

  12. Thank You

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