GVs OK for KCE

Ruapehu Bulletin, Volume 10, Issue 470, 26 January 1993, Page 3

GVs OK for KCE

King Country Energy 's directors have dismissed the idea of having the board's property assets revalued annually, saying it is an unnecessary expense. In contrast to the Society of Accountants - and its auditors - the directors say the threeyearly Government valuation is all that is required.

The society's Statements of Standard Accounting Practice says the revaluation of fixed assets should be conducted systematically, preferably on an annual basis and all assets within each class of asset should normally be revalued at the same time. It, says valuations should be conducted by an independent valuer who holds a recognised professional qualification and has experience in this location and category of the fixed asset being valued. "District Valuation Roll valuations should not be used for financial

reporting purposes unless the basis of valuation has been confirmed as appropriate for this by an independent valuer because: The interest in the property being valued for financial reporting purposes may be less than the freehold, and; The basis of valuation for the Government valuation may vary from net current value. This may occur when land and buildings are of a specialised nature." The Secretary-treasurer Norm Annand told the December board meeting that the board's auditors, Price Waterhouse, were in agreement and felt that once a revaluation is

done, it should be redone every year. But director Bill Peach, himself a chartered accountant, said Government valuations are free. "To do a revaluation as suggested by the SSAP28 would cost a lot of money." Fellow director Tony

Palmer said the board's customers would not want them spending $70,000 a year on valuing the assets. The board agreed its property assets will be revalued to Government valuation on a triennial basis when the Government valuations are reviewed.