Estate surveyors demand reform in asset valuation

The Nigerian Institution of Estate Surveyors and Valuers, NIESV President, Dr. Bolarinde Patunola has declared as an aberration any valuation done by non-valuers while calling for an adoption and implementation of a radical plan proposed under the International Public Sector Accounting Standards (IPSAS) for all Ministry, Departments and Agencies (MDAs).

The proposal was presented at a meeting between NIESV and Accountant General of the Federation (AGF), Mr. Ahmed Idris, which Patunola said became necessary to fulfill the Estate Surveyors and Valuers’ Registration Board of Nigeria Act, Cap E13 LFN 2007, which criminalises any valuation done by non-valuers.

IPSAS are a set of accounting standards issued by the Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

In Nigeria, IPSAS was endorsed by the Federal Executive Council (FEC) for public sector accounting while IFRS was adopted for private sector accounting reporting as far back as 2010. Since then, AGF office has been playing a leading and co-ordinating role for effective implementation by all levels of governance in the country.

Specifically, in the meeting the Patunola-Ajayi faulted the non-inclusion of estate surveyors in the MDAs-IPSAS Implementation Committee. “As important and as critical as the competence of our professional members is, the committee did not factor the valuer’s competence either as an in-house member or as out-sourced input.”

“The terms of reference of the MDA-IPSAS committee included: to identify and document all assets and liabilities of the MDA grouped as follows: investment property; property, plant and equipment; biological assets and agricultural produce; intangible assets among others,” he said.

The six requests made by the institution at the meeting are as follows: inclusion of qualified estate surveyor and valuer in all the MDA’s IPSAS committees at all levels; engagement of registered estate firms in the valuation and preparation of public sector asset register and adoption of the reviewed attached sample of fair valuation template/schedule.

Other demands include issuance of a directive to all MDAs to the effect that asset registration and valuation should be captured in the 2018 Budget for those which have not valued their assets for IPSAS compliance; implementation of immediate establishment of Directorate of Valuation in the Financial Reporting Council of Nigeria (FRCN) as well as establishment of asset management department in each MDA, to be headed by a qualified estate surveyor and valuer.