Property revaluations : An examination of some accounting and valuation practices

Abstract

The objective of this study is to outline the nature, size and justification of property revaluations with respect to six property investment companies listed on the New Zealand Stock Exchange - Aurora Group, Chase Corporation, Grosvenor (Kupe) Investments, Landmark Properties, Robt. Jones Investments and Williams Property Holdings. I will endeavour to examine how these revaluations impact on earnings, share prices and dividends, and whether the revaluations appear justifiable in the light of government and market valuation data available at the time. The study comments on the problems associated with the accounting conventions used at present, and puts forward some possible recommendations as to the improvement of reporting practices for this revaluation activity.