1. The report does not stop with the valuer — it travels up the chain
A foreign institutional investor never consumes a valuation report on its own. The value passes through several successive readers: the subsidiary's finance function, the group head office, the consolidation team, the external auditor and the statutory auditor, sometimes a lender or an investment committee. Each applies its own check — and the most demanding link is the group auditor, whose opinion conditions whether the value is integrated into the consolidated accounts.
For the institutional investor, the challenge is therefore not merely to obtain a value, but to obtain a value that is read and accepted internationally. That is precisely the role of RICS / IVS standardisation: applying in Morocco the same bases, methods and ethical rules as in London or Dubai, so the auditor recognises a familiar document rather than a local framework to decode.
2. The auditor's first reflex: the basis of value
The very first check concerns the basis of value used and its consistency with the accounting objective. For an IFRS consolidation, IFRS 13 Fair Value applies; for an open-market transaction, IVS 104 Market Value. These two definitions are, as our IFRS 13 fair value guide sets out, conceptually convergent — an exchange value, at a precise date, between willing and informed parties, without compulsion.
The full picture of the recognised bases is covered in our article on the RICS Red Book bases of value. What the auditor wants to verify is simple: is the stated basis the right one for the intended accounting use, and is it explicitly named in the report? A value without a clearly stated basis of value is, for them, not usable.
3. The valuation date — the sensitive point of consolidation
IFRS 13 fair value is measured at a precise date — in practice the group's reporting date. The statutory auditor therefore systematically checks that the report's valuation date coincides with the reporting date, or that a supplementary document attests to the absence of any material event between the two dates.
This is a frequent source of friction: a technically flawless report dated several months before the reporting date forces the auditor to request an update or a stability statement. A RICS report always states the valuation date unambiguously — it is a Red Book requirement, and a signal of seriousness to the reader.
4. The IFRS 13 input hierarchy: Levels 1, 2, 3
The auditor expects the report to allow the value to be classified within the IFRS 13 hierarchy, because that classification drives the disclosures in the notes:
- Level 1 — quoted prices in an active market for an identical asset. Almost never applicable to real estate.
- Level 2 — observable inputs for similar assets: recent comparable transactions, observed market rents.
- Level 3 — unobservable inputs: internal models (DCF, operating assumptions). Owing to limited market liquidity, a large share of real estate valuations in Morocco fall under Level 3.
For a Moroccan asset classified at Level 3, the auditor requires a clear description of the methods, the key assumptions(cap rate, rental growth, vacancy) and, ideally, sensitivity analyses. A RICS report that sets out these choices in a traceable way feeds directly into the group's IFRS notes — instead of forcing the finance function to reconstruct the information.
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Request a quote5. Assumptions and special assumptions: what the auditor tracks
A value only makes sense in relation to the assumptions that underpin it. The auditor reads carefully the assumptions and special assumptions set out by the valuer: the rental position adopted, works assumed completed or not, planning situation, marketing conditions. An unflagged special assumption — for example a value assuming a lease that does not yet exist — would distort the accounting reading.
The Red Book specifically requires the explicit disclosure of these assumptions. That is what allows the auditor to challenge the value on bases comparableto those they would apply to an asset located in another jurisdiction of the group. Standardisation does not remove the valuer's judgement — it makes it legible and open to discussion.
6. The Chartered Surveyor's signature: traceability and responsibility
For the auditor and for governance bodies alike, the identity and qualification of the signatory are no detail. The signature of a RICS-certified Chartered Surveyor engages the valuer's professional responsibility and places them within an internationally recognised ethical and disciplinary framework — including rules on independence and disclosure of conflicts of interest.
In concrete terms, the auditor verifies: who valued, with what qualification, in full independence from the audited entity, and under which set of claimed standards. This traceability chain — an identified, qualified, accountable valuer — is what turns an opinion of value into usable audit evidence. It is also what every foreign investor requiring a RICS valuation in Morocco is looking for.
7. IVS compliance: the bridge between Morocco and head office
The common thread running through all these checks is the same: the auditor wants to find, on a Moroccan asset, the same bases of value, the same methods and the same ethics as on any other asset of the group anywhere in the world. That is exactly what a RICS-compliant property valuation in Morocco guarantees: a report anchored in the International Valuation Standards, therefore read and accepted internationally — by head office, by auditors and the statutory auditor, by lenders, and for IFRS consolidation.
For an institutional investor, RICS / IVS compliance is not a formality: it is the bridge that lets Moroccan real estate communicate with global standards. It reduces audit risk on the value, shortens the back-and-forth with head office and secures the accounting notes. The same logic applies when bringing an asset into scope: see our article on consolidating a Moroccan asset into a foreign group.
8. FAQ
Why does a group auditor specifically ask for a RICS Red Book compliant report?
Because it rests on the same bases of value (IVS), the same methods and the same ethics as in London, Paris or Dubai. The auditor does not have to interpret an unfamiliar local framework: they find a structure, a vocabulary and a level of disclosure they know how to read and challenge. This reduces audit risk on the value and makes sign-off in consolidation easier.
What does the auditor check first in the report?
The basis of value and its consistency with the accounting objective (IFRS 13 Fair Value in consolidation, or IVS 104 Market Value, with which it is conceptually convergent), the valuation date, the identity and qualification of the signing Chartered Surveyor, the independence statement, the explicit assumptions and special assumptions, and the classification of inputs within the IFRS 13 hierarchy (Levels 1, 2, 3).
Why is the valuation date so important for the auditor?
Because IFRS 13 fair value is measured at a precise date — usually the reporting date. The auditor checks that the valuation date coincides with the group's reporting date, or that a supplementary note attests to the absence of any material event between the two. A value on the right basis but at the wrong date is not directly usable.
Do most Moroccan real estate assets fall under IFRS 13 Level 3?
In practice, a large share: limited market liquidity and the use of internal models (DCF, operating assumptions) place many valuations at Level 3 — unobservable inputs. The auditor then expects a clear description of the methods, the key assumptions (cap rate, rental growth, vacancy) and sensitivity analyses.
Is a new report needed at each reporting date?
Frequency depends on the applicable standard (IAS 40 for investment property, IAS 16 for the revaluation model) and the group's policy, not on IFRS 13 directly. From the auditor's point of view, what matters is that the value adopted corresponds to the reporting date and that any update is documented. On timing, our reports are delivered in 5 to 8 days, 48-72 h express, with a firm quote within 24 h.
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Note: This article describes a methodology for reading a valuation report for reporting and consolidation purposes. The definitions cited refer to the RICS Red Book Global Standards 2025, the IVS and IFRS 13; the precise accounting treatment (applicable standard, valuation frequency, disclosures) is a matter for your group's choices and must be confirmed with your auditors and statutory auditor. For a valuation compliant with international standards, see our property appraisal services or the blog.