Real Estate Division John Bridal Associate Director, UBC Real Estate Division May 30, 2009 Preparing for IFRS: Learning and Adapting

Presentation Outline How should appraisers prepare for IFRS? Terminology & Technicalities Practice Questions & Timeline Sources of Work & Challenges Networking & Self-Promotion Continuing Education

GAAP & IFRS Terminology To communicate on IFRS, appraisers must know accounting lingo Acronym Soup! GAAP, IFRS, IAS, PAE, GBE, GBTO, PP&E ETC, ETC, ETC

Questions awaiting answers Practice Questions for Canadian IFRS Implementation Who will likely complete valuation work? How often will real estate assets be re-valued? Who will be the clients? What is volume of potential business? –Quantity and Timing of Workflow –PP & E versus Investment Property –Other requirements: business combinations, impairment –Geographic distribution

Timeline for IFRS in Canada CICA Jan 2009 IFRS Update FYs ending Dec 31 st means reporting under IFRS beginning Jan 1, 2011 FYs ending March 31 st means reporting under IFRS beginning April 1, 2012 PAEs must collect data in 2010 for comparative statements under IFRS

Valuation Possibilities Examples of emerging valuation work New clients Business combinations Impairment Unique assets Risk analysis

Appraisal Challenges Potential Challenges: Land/Improvement allocation Client pressure to cut costs and limit scope Inspection / due diligence / use of update factors Standards concern: threats to valuation credibility Pressure to regionalize / nationalize independent firms Appraiser capacity: too much work?

“Accounting for Change” Valuation Insights and Perspectives (2002) Network, network, network. Get familiar with the technical rules. Meet the accountants. Take a lawyer to lunch (mainly one who does business combinations like mergers and acquisitions) Seek out business brokers. Attend a seminar: AIC, AI US, or other Call your favourite portfolio manager.

How Can Appraisers Prepare? Self Promotion: Update your firm’s website – show you are ready for new business! Watch for MERX and Provincial bid requirements related to Government-Based Businesses (GBEs/GBTOs) Build stronger links with accounting professionals in public practice and within specific industries

How Can Appraisers Prepare? Accounting Sources of Continuing Education Self-study through CICA or CGA continuing education Big 4 websites: KPMG, PWC, Ernst & Young, Deloitte Subscribe to CICA web alerts on IFRS – keep current Network with local accounting professionals

How Can Appraisers Prepare? AIC / UBC Education: CPD 114: Valuation for Financial Reporting – Real Property Appraisal and IFRS Developed by UBC on behalf of AIC Webinar offering Friday June 5 th, am-1pm EST / 8am-10am PST Self-study offerings any time, at your own pace Enroll in the AIC IFRS sequel to Lesson 1 scheduled for

Real Estate Division Thank You