Abstract
Increase in number of the investment property items available in both domestic and international markets, present-day European integration processes, as well as existing differences in statutory provisions in force (controversial essentials of the investment property identification as an asset and ambiguity of implementation of the methodological approaches to the investment property valuation) have stipulated the need for improvement of the hierarchy of the investment property item fair value recognition and measurement criteria. Proposed identification methods will contribute into amplification of the synergy effect of the investment property item accounting and management due to improvement of quality and fairness of the information data on certain assets of the establishment. Methodology for the investment property valuation and changed value reporting format were worked out based upon critical analysis of the scientific professionals’ main approaches to the investment property fair value measurement as provided for by statutory requirements to disclosure of the asset related information. Findings made and recommendations worked out on consideration of the harmonized indicator system implementation have thereafter found the practical use in the investment property item management efficiency assessment model.
Highlights
Continuous development of the up-to-date technologies does stipulate the need for seeking opportunities for effective disposal of the real estate items in order to retain competitive market positions
The controversial essentials of the investment property identification as an asset, as well as a lack of well structured and clear algorithm of the fair value measurement are considered to be the key challenges preventing from improvement and effective management of the investment property items
Global business and capital integration provide for more strict requirements to quality, completeness, fairness, timeliness and correlation of the information sources, contributing into the need for rejection of traditional measurement of assets at the initial value thereof taking into account their usability impairment and development of the methodological approaches to the investment property measurement just at fair value
Summary
Continuous development of the up-to-date technologies does stipulate the need for seeking opportunities for effective disposal of the real estate items in order to retain competitive market positions. In order to avoid adverse effect of the subjective eralization of transactions therewith in the finanprofessional opinions with regard to recognition cial statements of the company It shall and valuation of the investment properties in the be reasonable to determine probability and ways accounting systems of the developing countries, it of getting economical benefits from its use only afshall be necessary to provide details and specify ter measurement of value thereof Having followed up the evolutionary effect that contribution into investigation of the range of valthe financial capital has upon on the commercial uation related problems, as well as its effect upon property valuation in the UK through preparing financial results of the companies from allover the a historiography of the investment cost measure- world, it shall be said about absence of the comment beginning from 1960, supporting views mon harmonized methodology for the investof Crosby and Henneberry (2016), it has been ment property valuation and clear regulations for found that in consideration of fair value measure- step-by-step implementation of methods and apment weaknesses the traditional valuation meth- proaches thereto. Financial statements of the tion tool was translated into practice only said companies may not be classified as made in March 1995, i.e. after adoption of the IAS in compliance with the IFRS requirements
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