Case Study: UAE University - UAEU Assets Valuation of Lands & Buildings
Overcoming Challenges in Property Valuation Amidst the COVID-19 Pandemic
In alignment with the International Public Sector Accounting Standards (IPSAS) 17, the UAE University (UAEU) faced the imperative of conducting an independent valuation of Property, Plant, and Equipment (PPE) during the unprecedented COVID-19 pandemic. This regulatory mandate necessitated a valuation of buildings amidst serious health-related risks, posing a unique set of challenges.
Conducting a comprehensive valuation of a group of buildings during COVID-19 presented a series of hurdles, including limited access to premises due to pandemic restrictions. The situation called for innovative solutions to ensure compliance and timely completion of the valuation process.
In response to the challenges, Assist Plus proposed and implemented a solution that utilized desktop valuation techniques leveraging market rate information. The process incorporated building condition survey reports and leveraged Google Earth as a crucial tool to overcome limitations in physical access. This approach ensured a thorough and reliable valuation while adhering to health and safety protocols.
The Assist Plus Accounting and Auditing Valuation team delivered the report in record time. The report was meticulously supported by reliable data, forecasts, and projections, aligning with industry best practices. Key elements of the report included:
Description of the purpose, use, and scope of the valuation analysis.
Approaches followed and results of the work performed for each category of assets and inventories.
The strategy deployed in carrying out the assignment.
Statement of assumptions and limiting conditions.
Complete list of Fixed Assets with relevant details (Cost, depreciation, replacement value, Market value, etc.).
"Assist Plus was a completely different kind of partner. They took something very complex and created a simple, beautiful, intuitive user experience. With no reservation, I can state that this was done in a timely and professional manner." - Robert Smith, CFO, UAEU.
Top 3 Takeaways
Invest in Technology: Emphasizing the role of technology as an enabler, saver, and risk mitigator, especially during challenging times like the COVID-19 pandemic.
Information is Key: Clear and reliable information is essential in facilitating and expediting any exercise, including complex tasks such as property valuation.
Teamwork Matters: Collaboration between counterparties is a significant factor in executing and achieving expectations, leading to project success.
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