Implications of valuation methods for the management of property assets

Citation

(1999), "Implications of valuation methods for the management of property assets", The Bottom Line, Vol. 12 No. 2. https://doi.org/10.1108/bl.1999.17012baf.008

Implications of valuation methods for the management of property assets

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Implications of valuation methods for the management of property assets

S. Sayce and O. Connellan in Property Management (UK), 1998 Vol. 16 No. 4: p.198 (10 pages)

Appraises UK property valuation methods and the problems associated with their application in the public sector, particularly 'market price' and 'worth'. Claims both concepts can be inadequate for non-profit bodies where facilities are for the social good. Illustrates the problems by discussing an ongoing project, which considers these issues for leisure areas such as heritage, sports and cultural properties where management practices often mirror those in the commercial sector but where the operation is not profit-oriented. Gives examples within this 'hybrid' leisure grouping where facility acquisitions and disposals occurred but where the valuation methodology was inappropriate but expedient, e.g. use of depreciated replacement cost. Recounts interview data that supports the need for an appropriate methodology for such facilities which accommodates 'value in use' and reflects connected social return and political end aspects. Claims valuations for strategic management could be meaningless without such a measure. Reports the research is now focusing on that aspect.

Subject(s): Value-in-use, Pricing, Leisure property, Public-sector accounting

Style: Comparative/evaluation, Case study

Reference: 28AC435 (1 credit)