IDEAS home Printed from https://ideas.repec.org/p/ttu/wpaper/132.html
   My bibliography  Save this paper

Practical Issues in the Valuation of Real Properties with Special Reference to Income Approach and Financial Reporting Purpose

Author

Listed:
  • Veronika Ilsjan

    () (School of Economics and Business Administration, Tallinn University of Technology)

  • Kaia Kask

    () (School of Economics and Business Administration, University of Tartu)

Abstract

During the past few years there have been many changes in financial reporting rules in EU countries. One significant change from the real estate point of view has taken place in balance sheet, where property investment account is switched to the asset side of the balance sheet, separate from the property, plant and equipment. Since 2005, all companies listed in the stock market have the obligation to apply International Accounting Standards/International Financial Reporting Standards (IFRS) in their everyday practice. At the same time, more and more researchers have pointed to the problem of valuation accuracy and to the uncertainty of the valuation product. The aim of the paper is to explore practical problems in implementing the income approach in the valua≠tion for financial reporting purposes in Estonia. To achieve the aim of the paper, the authors conducted a survey, sending out a comprehensive questionnaire to all certified general appraisers (GA). The survey findings show that the valuation for accounting purposes is topical mainly in major cities in Estonia. The valuersí behaviour refers to overconfidence in their actions together with above-average self-esteem, which is not supported by actual survey results. However, one of the main reasons here is that some theoretical regulations in standards are too general and need some specification to harmonise appraisersí behaviour in practice.

Suggested Citation

  • Veronika Ilsjan & Kaia Kask, 2005. "Practical Issues in the Valuation of Real Properties with Special Reference to Income Approach and Financial Reporting Purpose," Working Papers 132, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
  • Handle: RePEc:ttu:wpaper:132 Note: This research was conducted with support from the Estonian Science Foundation (project No. 5286).
    as

    Download full text from publisher

    File URL: http://deepthought.ttu.ee/majandus/tekstid/TUTWPE_05_132.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Veronika Ilsjan, 2003. "Current issues in real property appraisal in Estonia," ERES eres2003_309, European Real Estate Society (ERES).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liis Ojam‰e, 2007. "Appraising and Brokering in Estonian Housing Market: Different Forms and Norms of Professionalisation," Working Papers 157, Tallinn School of Economics and Business Administration, Tallinn University of Technology.

    More about this item

    Keywords

    real estate appraisal; appraiser behaviour; uncertainty in valuation; valuation for valuation reporting; income approach;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ttu:wpaper:132. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Urve Venesaar). General contact details of provider: http://edirc.repec.org/data/fettuee.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.