Depreciated replacement cost method of valuation for financial reporting
Published November 2018
Effective from January 2019
Reissued July 2024
The purpose of this UK professional standard is to draw attention to matters relevant to the use of the depreciated replacement cost (DRC) method of valuation.
The ‘cost approach’ and DRC method are regarded as synonymous terms; both are in common use around the world to describe a method of valuation of all types of assets. This standard also highlights the reporting requirements outlined in RICS Valuation – Global Standards: UK national supplement (RB UK) that are particularly relevant when the DRC method has been used.
This document was reissued in July 2024 as a professional standard. It had previously been published in November 2018 as a guidance note. No material changes have been made to the document.