​Q: We outsource all valuations. Is it necessary to update quarterly cash flows when we anticipate no changes? We perform a quarterly internal.

A.The Reporting Standards require quarterly valuations which can be completed either internally or externally and approved in writing. Beginning January 1, 2012, the Reporting Standards require annual external valuations (unless client agreement stipulates otherwise but in no event less frequently than once every 36 months. In the quarters between the annual external appraisals the Reporting Standards internal valuations requirements indicate that the scope of the interval valuation must be sufficient to determine that the value of each property has been appropriately determined. The scope should include, but not be limited to the following:

  1. Use appropriate, established valuation techniques 
  2. Demonstrate independence of valuation process, oversight, review and approval. 
  3. Contain sufficient documentation for auditors to re-compute the calculation during audit.
  4. Reconcile any significant variance from the previous external appraisal. 


If the Account can comply with these requirements without updating quarterly, then the update is not necessary.

Valuations Q&A

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