Abstract:

The article compares how property valuers and statutory auditors take VAT into account when determining the market value of real estate and when assessing whether this value may be used as fair value in accordance with IFRS 13. The empirical basis is a survey of 74 professionals (36 valuers and 38 auditors) combining a knowledge test, attitude scales and four decision-making vignettes. Valuers more frequently refer to the definition of market value, valuation regulations and the net amount, whereas auditors place greater emphasis on the purpose of measurement, VAT deductibility, disclosures and data uncertainty. The greatest differences were identified in the consumer market and for heterogeneous net and gross data. When market value is applied for financial reporting purposes, the quotation basis, VAT status and data normalisation method should be explicitly disclosed.