Regnskabsmæssige behandling af investeringsejendomme: Værdiansættelse og det retvisende billede

Abstract

The scope of this thesis is to highlight possible consequences that could arise from fair value calculations of investment properties, with a focus on how a company can ensure that filed annual reports are accurately presented according to law. The fair value method is considered to be the most accurate representation of property value since it reflects current market values. This method, however, requires significant accounting estimates, and the company must take necessary steps to ensure that the documentation used to evaluate the properties is sufficient and free from bias.

The report finds that, to ensure true and fair views, several key components must be addressed. The selection of the valuation method needs to be aligned with the property’s characteristics and its economic conditions. Companies with property portfolios where future cash flows are stable wouldn't necessarily need to pick the DCF model, as the income capitalization model would suffice and be more suitable. In contrast, the DCF model, which considers future cash flows over a budget period, would suit complex properties with unstable cash flows and has the capacity to include unpredictability.

The paper concludes that the accounting treatment of investment properties requires a balanced approach that considers regulatory compliance, company resources, and the needs of the users of the annual report. The choice between the fair value model and the cost model should be based on the users’ needs and the company’s resources, combined with the uncertainty of accounting estimates, which stem from market conditions and the specific characteristics of the property in question. By ensuring that the company makes choices based on a knowledgeable foundation, the financial statements can be both accurately presented and informative to their users. By adopting a well-documented approach, companies can produce statements that not only comply with Danish regulatory requirements but also enhance the informative value of the financial statement.