A regular question asked at workshops is about whether or not valuations need to be provided by an external valuer. Despite some believing that this is a legal requirement the quick answer is no. Most jurisdictions have legislation that provides that only registered valuers are legally able to provide valuations for land. However there are no restrictions limiting anyone else from providing valuations for other assets (including buildings, roads, water and sewerage, etc).
The accounting standards also allow management to provide their own valuations and under IPSAS17 / IAS16 / AASB116 the entity is required to provide some information about whether the valuation was provided by an external person or internally. It is also common practice for entities to 'index' land valuations provided by valuers. This is OK as long as it is disclosed.
Most auditors also seem to have the view that the entity has the best knowledge of their own assets and how they behave and are maintained as as such prefer the valuations to be developed internally. Asset Valuer Pro provides the perfect solution where the internal staff can produce the valuations with the comfort of knowing that the software will ensure fully compliant methodology and will produce all the necessary outputs.
In terms of land we support the view that land needs to be valued by a registered valuer. However it is appropriate for the entity to index the valuation for a period of two or three years before requiring another comprehensive valuation by the valuer. For all other assets it is best to undertake the valuations in-house using Asset Valuer Pro which ensure full compliance with the ever-changing accounting standards.