Published on 01 Feb 16
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The market value of specialised land assets as part of a going concern business is not always readily observable because they may be rarely, if ever, traded on a standalone basis. Accordingly, a restoration method is sometimes used in assessing the market value of specialised land assets for “land rich” assessment purposes. This method seeks to value the specialised land assets by assessing the restoration costs of some selected non-land assets, using the restoration costs as a proxy for the “value” of the selected non-land assets, and subtracting the “value” of the selected non-land assets from the market value of total assets to arrive at a residual value which is said to be the market value of the subject land assets.
In this article, the authors argue that the restoration method is an inappropriate methodology. Its deficiencies result in the assessed market value of the subject land assets being inherently understated.
Hung is a Director of Lonergan Edwards & Associates Limited. Dr Hung Chu completed his master degree in Finance and Banking (with Merit among the top 2% of graduates) from the University of Sydney and his doctoral degree in Finance from the University of Technology, Sydney (graduated on Chancellor's List for Exceptional Scholarly Achievement in PhD research). He has 12 years of experience in the provision of valuation services and numerous technical papers published in academic and practitioners' journals.
- Current at
01 June 2016
Wayne is an internationally distinguished
practitioner with over 40 years valuation experience in takeovers
and mergers, litigation including loss assessment, tax, stamp duty
and other regulatory purposes. Wayne is the author of two leading
valuation texts and over 100 published technical papers in various
leading industry journals.
- Current at
01 July 2015