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The AFREXIM takes part in the expansion of the property valuation profession by approaching different sets of problems. Internal working groups are created to handle all areas of concern and present their observations to the relevant authorities for the development of professional standards.


Organisation of the valuation profession

In France, the property valuation business is only partially regulated, for the purposes of judicial valuations and for agricultural, land and forestry valuations.
There are however certain professional standards, such as the Property Valuation Charter, launched 10 years ago and updated in 2006, the COB/Barthès de Ruyter report and the ACAM texts. These are the principal standards which set the conditions for the operation of the profession and attempt to provide a single platform for all valuers.


Committee for the application of the Property Valuation Charter and the enhancement of the role of the property valuer

At present, more than 12 professional organisations, including the AFREXIM, have joined forces in the «Committee for the Application of the Charter», which ensures its proper application and its adaptation as appropriate to variations in the business of valuation and to new legislative and regulatory requirements.
The Committee actively ensures that the Charter is respected. It coordinates updating, linked to the business of valuation and changes in legislation, regulation and standards.
The Charter should serve as a foundation for greater transparency and clarity in property valuations.


IFRS

IFRS

With the aim of achieving transparency and harmonisation, a European Commission regulation covering the adoption of international accounting standards appeared in the Journal Officiel on 13 October 2003. This required companies quoted on European stock exchanges to prepare their consolidated accounts from the end of 2005 fully in accordance with the International Financial Reporting Standards.
Several of these standards concern property, in particular standards IAS 16 and IAS 40, which respectively cover tangible assets and investment buildings. Depending on the type of asset concerned, businesses need to choose between true value accounting, maintenance of assets at historical cost levels and periodic revaluation, at true value, of operating assets.

Given this background, property valuers are increasingly called on to assess components and/or their useful remaining life, as well as to break down the current replacement value into its site and construction elements.
That is why the AFREXIM has produced recommendations on the method for site-construction breakdown and for the first book valuation of the component parts. It gives its opinion, for the benefit of company directors and business leaders who need to take decisions about the publication of accounts, on the identification of the various component parts, the valuation of the site element and a pragmatic approach to the handling of various factors.


OPCI

OPCI

Until now, SCPIs (similar to Real Estate Investment Trusts) have been the main investment vehicle for unquoted property in France. Such companies are controlled by a very restrictive regulatory and fiscal environment, which has given rise to the introduction, as an alternative type of investment, of OPCIs (joint property investment organisations) which make borrowing easier, allow an element of choice in taxation (either on property income or on investment capital, depending on the OPCI selected), as well as improved liquidity, all of which should encourage investors to turn to this new type of product.
The main purpose of an OPCI is to invest in buildings which it lets or which it builds only for the purpose of letting, held either directly or indirectly, which may include projects for future completion, as well as all operations necessary for their use or disposal, the completion of any work in these buildings and also investment in equities.

OPCIs come under the authority of the AMF (the French financial markets authority) and any new OPCI must, as for SCPIs, have the prior approval of the AMF.


IPD

IPD France

The firms which belong to the AFREXIM are all partners of IPD through the committees of valuers.


Association FIDJI

Association FIDJI

Afrexim is full member of the FIDJI association since 2012 and the majority of members of the AFREXIM take part in the FIDJI association, whose purpose is to provide a context for the exchange of data for the property sector as a whole. There is a real need for this service, particularly since the creation of OPCIs and given the quarterly cycle of valuations.


TEGoVA Member

TegOva

The involvement of the AFREXIM with other associations enables it to maintain international relations and also to adapt to developments in the European property world. Since 1997, it has belonged to two European associations: TEGoVA and its coordination body, TEGoVA France. Faced with a need to organise the valuation profession, TEGoVA, in liaison with the European Union, has encouraged all valuers working in France to standardise the profession and respect a code of professional ethics. Since the early 1980s, the organisation has published the EVS (European Valuation Standards), which provide the fundamental principles of valuation and a guide to their use.
TEGoVA's objectives are based on the following four main functions: