Valuation standards. A comparison of four European countries
| DOI | https://doi.org/10.1108/14635780210420025 |
| Date | 01 April 2002 |
| Pages | 127-141 |
| Published date | 01 April 2002 |
| Author | Clare McParland,Alastair Adair,Stanley McGreal |
| Subject Matter | Property management & built environment |
Academicpapers:
Valuation
standards
127
JournalofPropertyInvestment&
Finance,Vol.20No.2,2002,
pp.127-141.#MCBUPLimited,
1463-578X
DOI10.1108/14635780210420025
ACADEMICPAPERS
Valuationstandards
AcomparisonoffourEuropeancountries
ClareMcParland
JonesLangLaSalle,Dublin,Ireland
AlastairAdair
SchooloftheBuiltEnvironment,UniversityofUlster,Newtownabbey,
NorthernIreland,and
StanleyMcGreal
CentreforResearchonPropertyandPlanning,UniversityofUlster,
Newtownabbey,NorthernIreland
KeywordsMethodsofvaluation,Standards,Investmentappraisal,Europe
AbstractOutlinesthecasefortheharmonisationofEuropeaninvestmentvaluationstandards.
SpecificattentionfocusesuponthenationalvaluationstandardswithinSweden,The
Netherlands,GermanyandFrancewithaviewtoassessingtheprospectsforuniformly
acceptedEuropeaninvestmentvaluationstandards.Currentpracticeandperceptionsfrom
interviewswith110valuersareanalysed.Educationalbackgroundandprofessionaltrainingare
showntobeinfluentialindecisionsuponwhethertousenationalstandards,TEGOVAstandards
ortheRICSRedBook.Theadventofpropertyperformanceindexseriesisshowntobeamajor
factorinfluencingtheharmonisationofvaluationmethodsandstandards.Conclusionsreflect
uponthevariationbetweenthefourcountriesandthelimitedprogressontheadoptionof
harmonisedstandardsinEurope.
Introduction
ThedebatesurroundingtheharmonisationofEuropeaninvestmentvaluation
standardsoriginatedinthe1970swiththepublicationoftheGuideBleuorthe
Bluebook.Interestonthisimportantissueclearlyhasbeenontheagendafor
sometimebuthasbeengivenrecentaddedimpetusbyseparatepublications
during2000ofaneweditionoftheapprovedEuropeanvaluationstandardsby
TEGOVA(TheEuropeanGroupofValuersAssociations)andtheupdated
internationalvaluationstandardsbyIVSC(InternationalValuationStandards
Committee).Indeed,SayceandConnellan(2000)maintainthatthepublication
ofTEGOVAstandardsis``animportantmilestone...inthedevelopmentof
consistentbasesuponwhichvaluersshouldconducttheirwork''.However,the
keyissueistheextenttowhichthesestandardsaresuccessfulinpromoting
theharmonisationofinvestmentvaluationprocessesinEurope.Likewise,
DorchesterandVella(2000)haveidentifiedtheTEGOVAstandardsashaving
animportantinfluenceuponinvestmentvaluationsinEurope.
ThispaperanalysesthepotentialforharmonisedstandardsinEuropeby
comparingprevailingnationalpracticesacrossselectedEuropeancountries.In
thisrespectthepapercontributestotheexistingdebateonthissubjectina
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