ABSTRACT

Valuation standards are important as they help to encourage transprancy and reliability. There has been much focus on valuation accuracy in recent times. It is argued that the procedures and methods employed by Nigerian valuers are marked by flaws and hence not reliable. This study examines the compliance level of Nigerian Estate Surveyors and valuers to the valuation Standards as part of the solution to valuation in inaccuracy and variation.

The absence of standard connotes lack of professionalism and constitutes a potential source of abuse, mediocrity, complacency and conflicts. This study is concerned with the credibility of proper valuation practice in Nigeria.

Valuation standards provide quality control measure on how to undertake and report on valuations. The aim of this study is to examine the compliance level of property valuation practice in Nigeria with the International Valuation Standards which is the highest valuation standard setting body. The data collection instrument used was the survey questionnaire and statistical analysis was done to ascertain the validity of the hypothesis. Using data gathered through structured questionnaire and from valuation reports, this study appraises the position of the International Valuation Standards and the current practice of property valuation. The study revealed that the valuation practice in Nigeria is yet to fully comply with International Valuation Standards and best practices for valuation and reporting.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study:

Valuation standards aim at providing guidelines to valuations by members which will promote consistency in the approach to valuation and help valuers achieve high level of professional competence.

Valuation standards are important because globalization and the flourishing of market economies around the world are demanding and getting a better architecture for the global financial system Ajayi 2009. According to Fernandez 2006, the financial system itself as it evolves, in a new and accelerated manner, looks inevitably for sound standards for its constituent parts.

Where there are no standards or where they exist but are not adhered to, there will be contradiction, variation and even litigation among professionally prepared valuation estimates Babawale 2006. In this time of unstable capital markets as noted by Aluko 1998, double digit inflation, escalating ...Get Complete Material.