Property magnate urges accounting overhaul
Former Liberty International chairman urges change to take into account fees paid on sales
Property valuations in company accounts should be revamped to reflect the
fees paid on sale, a leading property industry figure has said.
Donald Gordon, former chairman of
FT that he thought that the system of accounting that excludes the fees
leads to an undervaluation of listed property companies as a whole.
Properties that cost £100m may effectively cost up to several million pounds
more when stamp duty and fees are taken into account, Sir Donald said.
The former property magnate intends to pursue the issue with accounting
regulators, the paper reported.