• Project timeframes, such as lead times and selling timeframes

    Valuations need to reflect reasonable allowances for commencement and completion dates, as well as selling timeframes and similar, because these factors will impact on holding costs, financing costs and overall project risk. In examining valuations, it has been found that in a number of cases, lead times, for example, were unrealistic given the size and the peculiar characteristics of the property development.

    ATO position

    Project lead times, selling timeframes and completion timeframes must reflect commercial, market and planning reality of a project.

      Last modified: 27 May 2014QC 25319