The following valuation basis should be used for properties that are not impaired.
- Specialized properties should be valued on the basis of depreciated replacement cost.
Specialized properties are those which, due to their specialized nature, are rarely, if ever, sold on the open market for single occupation for a continuation of their existing use, except as part of a sale of the business in occupation.
Example; oil refineries, chemical works, power stations, or schools, colleges and universities where there is no competing market demand from other organizations using these types of property in the locality.
- Non specialized properties should be value on the basis of existing use value.
- Properties surplus to an entities requirements should be value on the basis of open market value.
Where there is an indication of impairment, an impairment review should be carried out in accordance with Financial Reporting Standards. The asset should be recorded at the lower of revalued amount and recoverable amount.
Tangible fixed assets other than properties should be valued using market value or, if not obtainable, depreciated replacement cost.