We know there's district field of property valuation for real estate and non-real assets. However, accounting is also awashed with business valuation etc. Are they similar, interchangeable or just complimentary?
There is a difference between economic evaluation and accounting evaluation
Well, there are, of course, three approaches to valuation. One is the market approach. That is probably the province of appraisers. A second one is the income approach. This could, at times, involve accountants. The third approach is the cost approach. Engineers could have a hand in this approach. When involving these other professions, there should be some degree of familiarity with the property type that is the subject of valuation.
@Peter. Thanks for your contribution. You seems to have looked at where ancillary services of accountants and engineers would blend into core activities of property appraisers.
Actually, the concern is as to whether the concept of valuation of a property asset within the framework of accountant's business valuation for instance, is a substitute or interchangeable with that of appraiser for the same property asset
These functions are not interchangeable. It is, however, interesting to guess just what portion of a business' value is attributable to their real estate assets and what portion is due to their business activities. I used to know someone in the marketing business who owned two buildings on a woodsy campus. These glass-sided buildings overlooking a pond were appreciating so rapidly that he couldn't say whether he might actually be in the real estate business instead of the marketing business.
But back to the subject at hand: it is unlikely that an accountant would be trained or experienced in appraising real estate using the market approach. (of course, a particular accountant might by chance have the training or experience to do everything.) However, the accountant might ordinarily be experienced in using a market approach to value whole businesses. For example, data sources are different. Also, the technologies involved are different. The result or conclusion is different.
You have really hit most of the points. I brought up the issue upon realising that some property appraisers are getting carried away by business valuation approach of the accountants, downplaying market-focus expected on valuation of property assets for various purposes. Professional property valuers, I believe should source their data from the field (property-specific and market-derived) as against substantially desktop approach in accounting with emphasis on documentary evidences and conventions.
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