The Globe and Mail in Toronto recently published an article dealing with IFRS adoption for the real estate companies and REITs in Canada. The article written byTerrence Belford was entitled Accounting change not adding up. See
http://www.reportonbusiness.com/servlet/story/RTGAM.20080630.wpraccounting0701/BNStory
The main concern was issues related to obtaining real estate values for financial reporting on a continuous basis. A process will have to be put into place for valuation. Of course the new valuation basis causes deferred tax issues because it is not recognized for tax purposes.
One question I have, a devil in the details if you like, is where are all the valuation professionals going to come from? How is the valuation process to be done in a verifiable fashion? There is some discussion on this in the article. I would like to hear about solutions so we can share them with readers
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