HFMA response / Response to HM Treasury’s thematic review of non-investment asset valuation for financial reporting purposes

The consultation sets out four options but proposes that option three is adopted:
• option 1 is to transition to the historical cost model
• option 2 is to continue with the revaluation model but hold all assets at fair value
• option 3 is to refine the valuation method based on the asset category (see table below)
• option 4 is to be more prescriptive about the frequency of revaluation either a periodic reset of deemed cost to current valuation or to continue on the current basis valuation basis, or the basis proposed in option three, but prescribe that the valuation should take place every five years.