Commercial property whole-life costing and the taxation environment

Liapis, Konstantinos; Kantianis, Dimitrios D.; Galanos, Christos

doi:10.1108/jpif-08-2013-0049

Cited by 17 publications

(20 citation statements)

References 10 publications

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“…Global trends in the investment property markets were studied by a number of the leading scientific professionals, who in particular were dealing with: risk assessment impact on the real estate value management (Baum & Hartzell, 2012;Ball, Lizieri, & MacGregor, 2012), role of the governmental autthorities in the investment property valuation process (T. Boyd & S. Boyd, 2012;Jackson & Watkins, 2011), taxation system and its influence on the commercial property valuation (Liapis, Kantianis, & Galanos, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Tax authority and the national taxation system effect on the commercial property and land valuation was studied by T. Boyd and S. Boyd (2012), Liapis, Kantianis, and Galanos (2014). The authors used mathematical models, whereby they acknowledge the material effect that the national monetary and credit, as well as fiscal policy has on the net current cost of investment in the commercial property and land as the investment.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Methodological approaches to investment property valuation

Фоміна

Moshkovskа

Prokopova

et al. 2018

Investment Management and Financial Innovations

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Increase in number of the investment property items available in both domestic and international markets, present-day European integration processes, as well as existing differences in statutory provisions in force (controversial essentials of the investment property identification as an asset and ambiguity of implementation of the methodological approaches to the investment property valuation) have stipulated the need for improvement of the hierarchy of the investment property item fair value recognition and measurement criteria. Proposed identification methods will contribute into amplification of the synergy effect of the investment property item accounting and management due to improvement of quality and fairness of the information data on certain assets of the establishment. Methodology for the investment property valuation and changed value reporting format were worked out based upon critical analysis of the scientific professionals’ main approaches to the investment property fair value measurement as provided for by statutory requirements to disclosure of the asset related information. Findings made and recommendations worked out on consideration of the harmonized indicator system implementation have thereafter found the practical use in the investment property item management efficiency assessment model.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Methodological approaches to investment property valuation

Фоміна

Moshkovskа

Prokopova

et al. 2018

Investment Management and Financial Innovations

View full text Add to dashboard Cite

show abstract

“…According to the work of Liapis et al (2014), the traditional NPV equation is transformed to a prototype DCF methodology introducing a number of variables that affect the valuation of fixed assets, after analysing a number of components like: the operating and net cash flows (OCF and NCF); the relationship between Price and Revenue of real property; the discount factor or Weighted Average Cost of Capital (WACC); tax rates; inflation and risk-free rates; risk premium; and expected capital gains. The analysis resulted in the development of an integrated DCF model based on the following mathematical expressions:…”

Section: Discounted Cash-flow (Dcf) and Fair Value Accountingmentioning

confidence: 99%

“…Both DCF and depreciation methods are applied to a typical commercial property assetan office building, as part of a real property developer's fixed assets portfolioin order to explore the relationship between these methods when applied to the valuation of fixed assets and how these methods correlate with each other. Using the above mentioned DCF methodology (Liapis et al, 2014), the assumptions and basic calculations are provided in the DCF and current accounting values per depreciation method are provided in Table 2 and DCF curves in Figure 1. During the whole useful-life of the fixed asset, its value is being recorded at any time with different values depending on the accounting principles and policies adopted as well as the depreciation methods used.…”

Section: Estimations and Findingsmentioning

confidence: 99%

Fair Value and Cost Accounting, Depreciation Methods, Recognition and Measurement for Fixed Assets

Tsamis¹,

Liapis²

2014

IJEBA

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In accounting and finance, fair value is a rational and unbiased estimate of the potential market price of a good, service or asset. On the other hand, cost accounting policy is more conservative and prudence. Accounting fairness refers mostly to the fair presentation, the initial recognition and measurement or valuation of an element. Therefore, adopting different accounting policies results in the assets being presented in the entity's financial statements with different values. With the application of cost or fair value accounting policies across firms or countries, the financial statements are being incomparable. Another issue arises from depreciation methods applied. With the application of different depreciation accounting methods across firms or countries, the financial statements are being incomparable. Both accounting policies for recognition and measurement and depreciation methods, determine the net value of fixed assets in financial statements' presentations. Thus, a decision-making procedure exists for recognition and measurement of property assets using the above components. The research objects of the paper are to explore in detail the relationship between cost and fair value accounting policies with depreciation methods, by enabling decision-making options. The financial method of discounted cash flow (DCF) technique is used for fair value accounting as well as for impairment test and the depreciation accounting methods are used for cost accounting policy, in order to explore the decision options for a property asset recognition and measurement. Following the above procedure, a fair value accounting model is correlated with the deprecation methods and an analysis of the impact of each decision-making alternative in financial statements' figures is produced.

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“…In Liapis et al (2014) this traditional NPV equation was transformed by introducing a number of variables that affect the valuation of real property projects, after analysing a number of components like: operating and net cash flows (OCF and NCF); the relationship between Price and Revenue of real property; the discount factor or Weighted Average Cost of Capital (WACC); tax rates; inflation and riskfree rates; risk premium; and expected capital gains. The analysis resulted in the development of a prototype integrated WLC methodology based on the following mathematical expressions:…”

Section: C₀mentioning

confidence: 99%

Property Assets Fair Value Accounting Under Uncertainty

Tsamis¹,

Liapis²

2014

ERSJ

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Accounting fairness refers mostly to the fair presentation, and therefore, measurement or valuation of an element recognized in the entity's financial statements. In accounting and finance, fair value is a rational and unbiased estimate of the potential market price of a good, service, or asset. Applying different accounting and valuation methods across firms or countries makes financial statements incomparable to each other. The research objects of the paper are: a literature view of IFRS 2 and US GAAP 3 principles and accounting standards for fixed assets; a critical perspective of the used accounting frameworks, providing comparison for each framework and each portfolio; the incorporation of uncertainty into the WLC 4 methodology for the valuation and management of real property assets. The methodology of WLC with the NPV 5 technique of a property asset, are used. These methods are incorporated into a decision-making mathematical model using the PERT 6 probability distribution function for the input variables. The model is applied to a typical property asset (an office building as a part of a company's fixed assets portfolio) in order to explore the significance of impacts from changes in structured variables by using the Monte Carlo Simulation. After the above procedure a unique fair value accounting model is founded on the dynamic integration of WLC fundamental concepts and the widely used appraisal measures for property assets with quantitative risk analysis to address the endemic in the property assets uncertainty.

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Commercial property whole-life costing and the taxation environment

Cited by 17 publications

References 10 publications

Methodological approaches to investment property valuation

Methodological approaches to investment property valuation

Fair Value and Cost Accounting, Depreciation Methods, Recognition and Measurement for Fixed Assets

Property Assets Fair Value Accounting Under Uncertainty

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