Mandatory Competencies

Question 1

IFRS16 and IFRS 13

Answer 1

IFRS16 – Lease Accounting Standard companies must comply when using the IFRS. Cost of leases need to be included on a balance sheet.
Service charge accounted for separately and leases under 12m.
IFRS13 – Fair Value Measurement – the amount at which an asset or liability would exchange between two market participants in an orderly transaction at the measurement date.

Question 2

Balance Sheet and Profit and Loss Statement

Answer 2

Balance sheets (statement of a financial position)
* Business’ financial position at a given date.
* Assets (cash, property, debtors)
* Liabilities (borrowings, overdrafts, loans, rent)
Profit and Loss Account (income statement)
* Income & expenditure transactions on an annual basis.

Question 3

Accounting Ratios

Answer 3

• ROCE (Return on Capital Employed) = Operating Profit / Capital
• Current Ratio = Current assets / current liabilities
• Profit margin = profit / revenue
• Gearing Ratio = debt / equity
  Experian Reports – give an indication to the strength of the covenant by giving a credit score out of 999.

Question 4

CBRE’s Business Planning

Answer 4

CBRE’s business plan:
* Short term: Increase attachment rates across the business
* Long term: Increase DE&I Initiatives

Question 5

Types of Company

Answer 5

PLC – Shares offered to the public. Limited liability
LLP – Partners liability is limited. Not responsible for others negligence
Limited Company – Responsible for debt to extent of capital invested
Sole Practitioner – One exclusive earner

Question 6

Inclusive Environments

Answer 6

NPPF – National Planning Policy Framework 2021 (updated Sept 2023 with info onshore wind development in England). It includes info on inclusive and safe places making them accessible. Sets out planning policies and how they are expected to be applied.
Updated in 2023.

Question 7

Diversity and Inclusion - 9

Answer 7

UK Equality Act 2010
9 protected characteristics: gender reassignment, sex, sexual orientation, age, disability, race, religion

Question 8

MEES 2015

Answer 8

• Leases from 1st April 2018 require an EPC of E or above
• £150k max fine based on RV, policed by Local Authority (20% of rateable value)
• 3 routes to exemption – 7-year payback, 5% loss in value, lack of consent.

Question 9

EPC Requirments

Answer 9

• Required for all commercial buildings over 50 sq m
• Exemptions = Listed, religious, to be demolished buildings
• Penalties = 12.5% RV of building (£500 - £5,000)
• Policed by Local Authorities
• From 1st April 2023, a landlord cannot let a commercial property with an EPC lower than an E without a legitimate reason.

Question 10

BREEAM

Answer 10

Building Research Establishment Environmental Assessment Method
Voluntary assessment tool to rate commercial buildings – 5 ratings:
* Pass, Good, Very Good, Excellent, Outstanding
* Energy, water use, transport links, wellbeing

Question 11

Sustainability VPGA 8

Answer 11

RBG - VPGA 8 – inspection of real estate, ESG, commentary on these factors important in terms of market and valuers should have regard.
Key Acts - Climate Change Act 2008 updated in 2019:
* Net zero carbon by 2050

Question 12

WHOLE LIFE CARBON ASSESSMENT (WLCA) SEPT 2023

Answer 12

Assessors can estimate the amount of carbon emitted throughout the life cycle of a constructed asset, from the early development to end of life. Gives visibility to embodied carbon, operational carbon, and user carbon –vital to carbon calculations and a unique feature of the standard. By giving visibility to the carbon cost of different design choices, it will help manage carbon budgets, reduce lifetime emissions and deliver a net-zero future.