The Benefits of Engaging a Professional Valuer for Financial Reporting – For Companies and Not-for-Profit Organisations

For companies and not-for-profit (NFP) organisations alike, accurate and transparent financial reporting is not just good practice—it’s a regulatory necessity. With increasing scrutiny from regulators, auditors, stakeholders, and donors, the valuation of property, plant, and equipment plays a critical role in presenting a true and fair view of an organisation’s financial position.

Engaging an independent, qualified valuer, particularly one who is a Certified Practising Valuer (CPV) and member of the Australian Property Institute (API), ensures your financial reporting meets the highest standards of compliance, accuracy, and professionalism.

Why Property Valuations Matter in Financial Reporting

Under Australian Accounting Standards (e.g., AASB 116, AASB 13, AASB 140), entities are often required to recognise and disclose the fair value of assets such as:

  • Land and buildings
  • Infrastructure
  • Investment properties
  • Leasehold improvements

This is particularly relevant when:

  • Assets are revalued for fair value reporting.
  • Property holdings impact balance sheet strength.
  • The entity is preparing for an audit or annual report.
  • There are large capital grants or donations to account for.

Key Benefits of Engaging a Certified Valuer

✅ Compliance with Australian Accounting Standards

A professional valuation ensures compliance with AASB and International Financial Reporting Standards (IFRS), such as:

  • AASB 13 – Fair Value Measurement
  • AASB 116 – Property, Plant and Equipment
  • AASB 140 – Investment Property

Certified valuers provide valuation reports that clearly document:

  • The valuation methodology
  • The market evidence considered
  • The assumptions used

This gives auditors, boards, and regulators confidence in the reported figures.

✅ Improved Audit Readiness and Transparency

Whether your organisation is subject to internal or external audit, asset valuations are often a key focus. A valuation report prepared by an API Certified Valuer:

  • Provides supporting documentation for asset values
  • Helps resolve audit queries efficiently
  • Reduces the risk of misstatements or qualifications

It also demonstrates robust governance practices and accountability.

✅ Enhanced Stakeholder Confidence

For companies, shareholders rely on financial statements to assess performance and make investment decisions. For NFPs, transparency in asset reporting is crucial to maintaining trust with:

  • Donors and funding bodies
  • Members and beneficiaries
  • Government departments and regulators

An independent valuation strengthens the credibility of your financial reporting and shows that the organisation values accountability and diligence.

✅ Accurate Insurance and Risk Management

Valuations performed for financial reporting can also inform:

  • Insurance coverage reviews
  • Asset management and depreciation planning
  • Risk assessment for business continuity

This is especially valuable for organisations with significant property holdings or specialised assets.

✅ Strategic Decision-Making

Accurate asset valuations support better strategic and financial decisions, including:

  • Property rationalisation or investment
  • Asset-backed borrowing
  • Budgeting and long-term planning

Having a clear understanding of asset values allows boards and executives to allocate resources more effectively.

Why Choose an API Certified Valuer?

An API Certified Practising Valuer:

  • Has extensive training and experience in valuation for financial reporting
  • Is bound by strict ethical and professional standards
  • Holds professional indemnity insurance
  • Provides reports that are audit-ready and legally defensible

API membership is a mark of quality, professionalism, and trust in the valuation industry.

Conclusion

Whether you are a CFO of a corporation or a finance manager at a not-for-profit, engaging a professional valuer for financial reporting is a strategic move that ensures accuracy, compliance, and transparency. It enhances stakeholder trust, supports audit processes, and empowers informed decision-making.

By working with an API Certified Valuer, your organisation demonstrates its commitment to financial integrity and good governance—cornerstones of long-term sustainability and success.

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