“Confused, Incomplete, or Inconsistent Owing to Market Instability”

The catchy title is a quote from an article in Monday’s Financial Times by Daniel Thomas and Jennifer Hughes. It refers specifically to a qualifying clause commercial property valuers are currently inserting in their valuations creating increased uncertainty for investors. “In a sharply falling market in which most transactions involve distressed assets, the valuers say they are having difficulty in setting reliable prices. Normally, they rely on recent transactions for comparable benchmarks.”

However, as usual, accountants are getting nervous and expressing concerns about the growing use of caveats and disclaimers on valuations. “Auditors will need to consider carefully the nature of the uncertainty in the valuation, the disclosures made in the financial statements and other circumstances affecting the company.” An alternative view suggests that “auditors should not worry as

This is only an excerpt of “Confused, Incomplete, or Inconsistent Owing to Market Instability”

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