ABSTRACT
Local Authorities are required to produce asset valuations for accounting and management purposes. Specialised property, for which there is little or no market, has to be valued under the oyal Institution of Chartered Surveyor Red Book using the Depreciated Replacement Cost (DRC) basis. This paper reviews the consequent requirements of Local Authorities and the valuation techniques available for producing capital and rental figures, including the latest 'S Curve method'. The asset valuations are part of a move to a common accounting approach aimed at ensuring a measure of conformity throughout local authorities. Specialised Properties are defined in the Red Book as: those which, due to their specialised nature are rarely, if ever, sold on the open market for single occupation and as a continuation of their existing use, except as part of a sale of the business in occupation. The cost approach is a sound and approved approach for specialised assets and arguably can be related to investment properties.
