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How are dilapidations and financial reporting linked?
Dilapidation assessments play an important role in lease agreements. They are conducted to show the occupier what repairs and maintenance are needed to restore a property or asset to its original condition.
In 2019, the International Financial Reporting Standards (IFRS) introduced a new standard: IFRS 16. It calls for businesses that lease property to include their rental agreements in their liabilities during an audit. Companies must also include a dilapidations assessment highlighting their repair obligations, as these can also be viewed as liabilities.
Firms can typically expect to be audited every two years. As this time approaches, arranging a dilapidation pre-assessment can ensure compliance with industry standards, preventing potential penalties from impacting your operations.
Whether you have an upcoming financial appraisal or just want to know more, we are here to help. Call 0800 051 2593 or complete our get in touch form to speak to an expert.
"With IFRS 16 bringing greater transparency to lease obligations, businesses must recognise that dilapidation costs are not just operational concerns but financial liabilities. A proactive dilapidation pre-assessment can help companies mitigate unexpected expenditures and ensure compliance before audits."
When will I need a dilapidations assessment?
Dilapidation assessments are usually conducted when a lease is ending, a company wants to plan restoration costs, or, in this instance, a business is undergoing an audit and needs to account for lease-related liabilities in line with IFRS 16 requirements.
What is included in a dilapidation pre-assessment?
You can typically expect a dilapidation pre-assessment to include the following features:
- Site inspection – A thorough examination of a rental property to inspect its condition
- Cost estimation – A detailed breakdown of potential expenses to complete repair and reinstatement work
- Risk analysis – Identifying any issues that may arise in the future
- Lease review – An in-depth assessment of your contract to understand your obligations
- Compliance check – Ensuring the details align with IFRS 16
How do I arrange a dilapidations assessment?
It is easy to arrange a dilapidations assessment with us. Simply call 0800 051 2593 and tell our team about your requirements. We will then be happy to organise your free consultation with an expert.
Should you choose to accept our services, we will book your appraisal and let you know when you can expect to receive your detailed report.
Why should I use Eddisons to assess my dilapidation liabilities?
Our proven track record and positive reviews can hopefully show you that we are a trustworthy and reliable company. Here are a handful of other reasons to choose us for dilapidations assessments:
- 180 years of experience
- RICS-accredited specialists
- 450 brilliant people with extensive knowledge of various sectors
- 30 UK offices, giving us national, regional and local knowledge
Book your dilapidation pre-assessment now
Do not hesitate to book your dilapidation assessment today to ensure compliance with IFRS requirements. Either call 0800 051 2593 or complete the form below to get started.
