Demystifying Investment Property Valuation: A Comprehensive Guide for Investors

1. +919868455181 valuer.tka@gmail.com HomeAboutUsServices3Our Valuation3 Our BlogContactUs OurServices IMPAIRMENTPROPERTYVALUATION Impairment valuation plays a significant role in financial reporting and decision-making, particularly concerning investment properties and the impairment of company assets. Under the accounting standard Ind AS 40, investment property valuation requires periodic assessment to determine if there is any impairment in the property’s value. Similarly, Ind AS 36 governs impairment assessment for other company assets, ensuring that theircarryingvaluedoesnotexceedtheirrecoverableamount. Through these processes, impairment valuation helps identify potential declines in value, assess the financial health of assets, and make informed decisions regarding their management, potentialwrite-downs,ordisposal.Itisacriticaltoolinmaintaining accurate financial statements and aligning with accounting standards. Impairment valuation services typically involve two main phases in the process. These phases help ensure a thorough and accurate assessment of impaired assets or businesses.Herearetwophasescommonlyassociatedwith impairment valuationservices:

2. 1.AssessmentPhase: The assessment phase involves gathering relevant data and information about the asset or business being evaluated for impairment. This phase includes a comprehensive review of financial statements, historical performance, market conditions, industrytrends,andanyotherfactorsthatmayimpactthevalueoftheasset. During this phase, impairment indicators are identified based on applicable accounting standards or guidelines. These indicators can include a significant decline in market value, adverse changes in the asset’s operating environment, or changes in legal or regulatoryfactors. The assessment phase also involves estimating the asset’s recoverable amount, which is the higher of its fair value less costs to sell, or its value in use. This estimation is typically done through cash flow projections, market comparisons, and other relevant valuationtechniques. 2.ValuationandReportingPhase: Inthevaluationandreportingphase,theestimatedrecoverableamount iscomparedtotheasset’scarryingvaluetodetermineif impairment exists.Ifthecarryingvalueexceedstherecoverableamount,animpairmentlossisrecognized. Valuationexpertsemployappropriatevaluationmethodologies,suchasdiscountedcashflowanalysis,marketmultiples,orother recognizedapproaches,todeterminethefairvalueoftheimpairedasset. Once the impairment loss is determined, it is recorded in the financial statements and disclosed by the applicable accounting standards. A comprehensive impairment valuation report is prepared, documenting the methodologies used, assumptions made, andtheresultingfairvaluedetermination. This phase may also involve additional considerations such as assessing the recoverability of related deferred tax assets or evaluatinganypotentialreversalsofpreviouslyrecognizedimpairments. These two phases, assessment and valuation/reporting, form a comprehensive process for impairment valuation services. They ensure that impaired assets or businesses are accurately evaluated, allowing stakeholders to make informed decisions based on thefairvalueoftheirassets.

3. ImpairmentofCompany Assets An asset is carried at more than its recoverableamountifitscarrying amount exceeds the amount tobe recovered through the use or sale of the asset. If this is the case, the asset isdescribedasimpairedandthe Standardrequirestheentity to recognizeanimpairmentloss. ImpairmentofAssets An impaired asset isan asset that hasa market valuelessthan the value listedon itsowner’sbalance sheet. According toU.S.accounting rules,thevalueofanasset is impaired when the sum of estimated futurecashflowsfromthatassetis lessthanitsbookvalue. ImpairmentAssessment An impairment cost must be included under expenses when the book value of an asset exceeds the recoverable amount. Impairment of assets is the diminishinginquality,strength amount,orvalueofanasset. Impairmentvaluation An impairment loss is an amount by which thecarryingamountof an assetoracash-generatingunit exceeds its recoverable amount. The recoverable amount of an asset or a cash-generating unit is the higher of itsfair value less costs ofdisposal and itsvalueinuse. IndAS36 The objective ofthis Standard isto prescribetheproceduresthatan entityappliesto ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amountifitscarrying amount exceeds the amount to be recovered throughtheuseorsaleoftheasset IndAS40 Permitstreatmentof property interest held in an operating lease as investment property, ifthe definition of investment property isotherwise met and fair value model isapplied. Insuch cases, the operatinglease wouldbeaccountedasifitwerea financelease.

4. InvestmentProperty Valuation Investmentvalue istheamountof money an investor would pay for a property.Itreferstoanasset’s specificvaluebasedoncertain parameters.Itisanindividual’s measurement of the asset’s property value. OurAdvantages HOWWEWORKS SHAREYOUR REQUIREMENT Here you may share specific requirements & expectation from valuationservicesclearlystating the purpose of valuation, status of property and name of the intended authorityusing thevaluation report. COMPETENCE& LICENSING You may confirm with the valuer about the credentials, experience, capacity, ability, and adequacy to carryoutthevaluation asperyour requirements for the specific purpose. ENGAGETHE VALUER Aftermutualsatisfactionwithwork requirements and credibility, you mayauthorizethevaluerto dothe necessary activity as per the requirementoftheassignment. GETTHE REPORT You may get the report agreed on theformatas pertherequirementof specificlawfromthevaluereitherin soft copy or a hard copy with due signature & stamp after clearing the duesofprofessionalfees.

5. Herevaluermay seekfromyou copiesofcertaindocuments. WhatPeopleSayAboutCompany Thevaluationservicesprovidedby TanujKumar&Associatesarevery promptandgenuine.Ireally appreciatetheirhardworkingand eiciencyinpreparingthe ValuationReportindetail. Thankyouforthemost professionalpropertyvaluation service.Theirvaluationreports alwayshelped–Iwillcertainly recommendtomyfriendsand family. Iwouldliketothankyoufor helpingusinmyresidential valuationquicklyandeasily.I wouldalsoliketoletyouknow thatyouhaveanamazingwebsite. Iappreciatetovaluer. MAHESHPATEL ASHWINSOLANKI SONALKHANNA

6. CONTACTUS FirstName LastName EmailAddress PhoneNumber Message SENDMESSAGE AboutCompany OurServices ContactUs Unlockingthetruevalueofyourassets. Weareyourone-stopshopforall property valuationneeds. Professional, reliable,andexperienced. ALands A +919868455181 RegisteredPropertyValuation ACommercialProperty valuer.tka@gmail.com A Mortgages     3033rdFloorBansalTowerCommunityCenter-II,Ashok Vihar-II,Delhi  A InstitutionalProperty AProperty Markets Copyright©2023TanujKumar&Associates Terms&conditions PrivacyPolicy DesigedBy:danstring.com