Værdiansættelse af investeringsejendomme i lyset af den finansielle krise

Rasmus Rolighed Pedersen

Student thesis: Master thesis

Abstract

The basis for valuation of investment properties at fair value is influenced by several factors related to required rate of return, idling, location, condition etc. Management's professional assessment and basis for valuation of investment properties is of first and foremost importance to the presentation and information about these assumptions in the annual report. The impact of the financial crisis on the real estate market has resulted in an increased focus on measurement of value of investment properties. The focus of this thesis, in consequence, is the factors underlying the valuation of investment properties in the period 2008 - 2009. At the same time, there will be an assessment of financial conditions that are considered to have influenced the development of the property market and what impact these risk factors may have on the assessment of the annual report. Returns’ method and the DCF model are the key valuation models to determine investment properties at fair value. The theoretical basis for this modeling will be included, as well as the technical approach of the audit. The assumptions used will ultimately result in the release of an audit opinion on financial statements. To exemplify this, two distinct groups, respectively the Essex and DADES Group - who use different types of valuation models will be analyzed. Information about the financial risk will also be included, in order to identify the factors that may have meant that Essex could not service its debt since the financial crisis started, in contrast to DADES. The overall performance of the property market, banks' loan measurement, disclosure in the annual report and other contributing factors will be analyzed, for the sake dissertation focuses on communication in the annual report.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages100