Mandatories Flashcards
- Why is it important to understand a client’s objectives?
Can have a more tailored service resulting in a more trusting relationship
- What is the Professional Standard which provides advice on Complaints?
RICS Professional Standard: Complaints Handling 2016
- When should details of CHP be issued to a client?
At the same time as the Terms of Business
- How should complaints be tracked?
In a complaints log
- What should you do when you receive a complaint?
Notify PII insurers and undertake CHP
- What are the minimum procedures for handling complaint?
Stage 1) IN HOUSE: Ensure the complainee has the Complaints Handling Officer details so they can contact them, must be acknowledged in 7 days, and investigated in 28 days
Stage 2) Alternative dispute resolution (3rd party): If not happy with Stage 1, uses independent redress scheme such as The Property Redress Scheme and the RICS Dispute Resolution Service (DSR)
- What are CBRE’s policies for CHP?
Must be acknowledged in 5 days and 20 days investigated, then respond with an action
Use the Property Redress Scheme for ADR
- What do good negotiation skills include?
- Agree objectives and strategy before beginning negotiations
- Always maintain communication
- Walk away if needed
- Active listening – responding and reflecting on what they say whilst retaining info
- What are the different forms of communication?
Verbal, non-verbal, written, Phone, email, meeting, zoom/teams, listening
- What is included in a set of public limited company accounts?
Chairman’s statement, independent auditor’s report, income statement (P&L), balance sheet, corporate governance report, remuneration report
- What is a balance sheet?
State of business’s financial position showing its assets and liabilities at a given date
- What is an example of an asset?
Cash, property, debtors
- What is an example of a liability?
Borrowing, overdrafts, loans, rent
- What is a profit and loss account?
Summary of business’s income and expenditure transactions on annual basis
- What are management accounts?
Internal use and not audited
- What are audited accounts?
Prepared by accountant
What is a cash flows statement?
A company’s cash inflows and outflows over a specific period of time including VAT
- What must all companies comply with when using International Financial Reporting Standards?
IFRS16 – Leasing Accounting Standard
- What needs to be included within the IFRS16 – Leasing Accounting Standard?
Full cost of leases need to be included in the balance sheet, such as rent, however, service charge payments are accounted separately
- When may an exemption to include leases on IFRS16 exist?
For leases of 12 months or shorter
- What is the Fair value Measurement?
IFRS13 – the amount at which an asset or liability would exchange between two market participants in an orderly transaction at the measurement date
- Why should you undertake financial background checks on prospective tenants?
Ensure they are reliable and responsible, pay rent on time, which provides less risk to client
- What is an Experian report?
Gives an indication to the strength of the covenant by giving a credit score, in other words how risky and what their credit limit is
- What is the UK GAAP?
The Generally Accepted Accounting Practice – set of accounting standards that businesses in the UK use to prepare financial documents
- Who publishes the UK GAAP?
Financial Reporting Council (FRC)
- What are the 5 general principles of Accounting?
- The accrual principle – income should be recognised when its earned not received
- The matching principle - expenditure should be recognised against revenues.
- The historic cost principle - actual cost is typically reported as opposed to current value (property depreciates, record what you bought it for)
- Conservatism principle - accountants should choose the approach that produces the lowest net income
- Substance over form principle - leasehold assets can be recorded as assets as long as their price is incorporated.
- What are statutory accounts?
Show a company’s financial performance over the previous year, used to calculate corporation tax
- What do statutory accounts include?
Balance sheet, P&L, Cash flow statements
- Who are statutory accounts shared with?
Shareholders and companies house
- What are some differences between statutory and management accounts?
Statutory accounts are required by law for companies house for limited companies, produces a statement of overall spending, whilst management are used for internal decision making