Botswana is proud to follow International Financial Reporting Standards across the board for medium and large scale companies and parastatals. The reasons are simple. One, threshold is at a lower level (P 10 million turnover or P 5 million total assets in the prior year - P 10.65 = 1 USD - June 2021) thus making most companies non-exempt. Two, the statutes establishing parastatals require audit which can't be done without IFRS-compliant financial statements. As readers may be aware IFRS has a lot of stipulations for asset valuations as a main conduit to find fair values where ready market may not exist.
There are quite a few Real Estate valuing companies, being members of the young Real Estate Advisory Council. These companies carry out professional valuation of assets such building, plant, machinery and equipment. Click http://reac.co.bw/home/ for more information on the property valuators and advisors in Botswana. Banks and financial institutions have a panel of valuers that they use for lending purposes. Valuation is a practical precondition for purchase / sale of fixed property in Botswana. Transfer Duty Bill requires professional valuations for duty computation purposes (rather than based on transaction price).
Most valuation reports contain Open Market Value, Forced Resale Value and Insurance Replacement Cost for real estate valuations. Depreciated Replacement Cost is specified for plant, machinery and equipment. Upon request professional valuers provide information on estimated useful lives of the assets and working condition of assets. Desktop valuations are often used as indicative values for previously valued assets.
Business Valuations are often conducted by audit and consulting firms and by corporate finance companies. For valuation of brands, patents, copyrights, franchise and other intangible assets, professional valuation services are often imported from South Africa or from Zimbabwe.