Hello Jason
Thanks for the question.
The client has provided evidence upon which to value the asset as at 30 June 2023. The issue is whether that evidence is appropriate for the task at hand, given the valuation is as at February 2024.
Clearly, if the valuation, provided in February 2024, was a valuation “as at 30 June 2023” there would be no issue at hand.
So, what we are really focusing on is whether a valuation as at approximately 7 months after year end for commercial real estate is sufficient evidence?
It is suggested, if this has not already occurred, that the trustee provides a written confirmation that the amount in the valuation has been treated as if it is indicative of the real estate’s land value as 30 June 2023.
I would be ok with a valuation that is provided “as at” approximately 7 months after year end, in the absence of some unusual factors – e.g., hypothetically, it was well known that commercial properties in a certain location had changed in value significantly due to some unique factor(s).
Would be interested to hear the views on other auditors faced with a similar question.
Best regards
The Auditors Institute