Questions 7 Flashcards
What is IFRS 16 ?
A lease accounting standard complying with international financial reporting standards
Rent is seen as a liability and the full cost of the lease has to be accounted for on a balance sheet
What would be included in your company accounts?
Provide a comprehensive view on the company’s financial position and cash flow enabling stakeholders to make informed decisions.
Will include:
• balance sheet
• profit and loss statement
What is a balance sheet?
A balance sheet shows the assets (what it owns), liabilities (what it owes) and equity ( the difference between assets and liabilities representing the companies worth)
What is a profit and loss statement?
Shows the company’s revenues and expenses and profits or losses over a specific period
What is a cash flow statement
Inflow and outflow of cash during a specific period
What are Management accounts and audited accounts?
Management accounts are prepared for internal use
Audited accounts are prepared by a chartered accountant
What is sustainability ?
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
How long is an epc valid?
10 years unless the building is altered
When do you need an epc?
• if your selling, renting or building commercial property, you need a commercial epc
• EPC is not required on lease renewals however it is advised to ensure the current EPC is compliant and not out of date
How important is an EPC?
An EPC rates how energy efficient your building is using grades from A-G
What are the minimum efficiency standards 2018 and how does it relate to commercial property?
• minimum efficiency standards were introduced by the government to improve the quality and increase the energy efficiency of buildings
• from 1st April 2023 all commercial properties must have an EPC of E
What are the upcoming minimum EPC ratings for Commercial properties ?
In 2027 commercial properties cannot be let without a C or above
By 2030 commercial properties cannot be let without a B or a above
Where is MEE’s excluded?
• if the building does not need an EPC (place of worship)
• tenancy is less than 6 months and outside the act
• where the tenancy is more than 99 years
•where it can be proven that improvements would devalue the property by more than 5%
• buildings under 50 sq m
Who polices EPC’s and what are the penalties?
The local authority police EPC’s and penalties depend on the length of breach and are expressed as a percentage of your rateable value minimum £500 and maximum £5,000
• MEE’s - penalties for non compliance in commercial property vary in length of breach with minimum £5,000 and maximum £150,000
What are the Governments Net Zero Carbon Targets?
The climate change act 2008 was amended in 2019 to require the UK to meeting net zero carbon by 2050
How does the government intent to reduce carbon for net Zero?
- Establish a net zero carbon approach
- Reduce construction impacts
- Reduce operational energy use
- Increase renewable energy supply
- Offset any remaining carbon
How else can you measure sustainability?
BREEAM - Building Research Establishment Environment Assessment Method
A Voluntary environmental assessment tool to rate new, refurbished and operational buildings
What building regs relate to sustainability?
Building reg L - conservation of fuel and power
What ratings are there for BREEAM?
Pass
Good
Very good
Excellent
Outstanding
Reflected as stars on a BREEAM certificate
What is an inclusive environment?
• an environment which is designed and managed to allow people with a diverse range of needs and abilities to access and use it
• during design and refurbishment to ensure people of all abilities can access
What does the responsible person need to understand?
Those with the responsibility to ensure that an environment is inclusive and accessible must understand;
• different physical and mental health issues which could lead to accessibility requirements
What building regs refer to access?
Building regs M refer to access
What are the four types of discrimination under the Equality Act 2010
- Direct Discrimination
- Indirect discrimination
- Harassment
- Victimisation
What are the 9 types of protected person?
• sex
• religion
• race
• age
• pregnancy and maternity
• marriage and civil partnership
• gender reassignment
What is an example of how your workplace can be more inclusive ?
• install ramps where needed and provide accessible toilets
What is the need for a diverse and inclusive workforce?
• increased productivity - more depth of ideas and experience
• increased creativity - more people with different perspectives
What is unconscious bias?
• unconscious bias is a term that describes the associations we hold outside of our conscious awareness and control
• we naturally categorise people and stereotype them
How to avoid unconscious bias?
• being aware of it
• blind CVs
How can you work effectively as a team?
• listening
• encouraging and inclusive language
• showing respect
• effective record keeping
• take turns to speak
What is the structure of Surveying Safely 2018?
- Personal responsibilities for RIcs members
- Assessing hazards and risks
- Workplace H&S
- Occupational hygiene and health
- Visiting premises and sites
- Fire safety
- Procurement and management of contractors
What is the Health and Saftey at Work Act 1974
“Duty to every employer to ensure so far as reasonably practical, the the health and safety and welfare okay work of all employees”
What does the Health and Saftey Act 1974 state that you must report?
- Report injuries and dangerous occurrences
- Hazards which refers to anything which can cause harm
- Detailed H&S information must be provided onsite
What is a safe person concept?
It means that each individual assumes responsibility for their own their colleagues and other health and safety while at works
Purpose of health and Saftey is to minimise risk of harm
What might a safe person ensure?
• a safe working environment
• safe work equipment
• safe systems of work
• competent staff
What is the process of a risk assessment?
- Identify a hazard
- Notice if anyone might be harmed by the hazard
- Evaluate the risk and consider the likelihood of accidents
- Record the findings suitably
- Review the risk assessment regularly
- Advise all those affected by the outcome and methods to minimise risk
What is a method statement? ( think of a contractor who has been instructed to do works, what do they need?)
• A document that details the way a work task or process is to be completed
• outline hazards involved and step by step process of how to do the job
• includes which control measures have been introduced to ensure saftey
What is public liability insurance?
Contractors all risk and liability insurance are required before work commences
What are the statutory obligations of a commercial property owner include?
• EPC’s
• fire Saftey
• H&S assessment and policy
• occupiers liability
• Waste Management
What does the Fire Saftey Act 2021 require?
• Buildings must have a fire risk assessment
• regular inspection of lifts
• ensure fire escape routes and equipment is in place
• ensuring fire Saftey doors are compliant
What is the RIcs professional Standard on Conflics of Interest 2017?
A global professional standard which provides clear rules for RIcs members and regulated firms to identify and manage potential conflicts of interest
What is conflict avoidance?
Saying no to an instruction based on the identification of a conflict
How can conflicts be avoided?
• careful drafting of the lease or contract
• adopting conflict avoidance risk analysis
• managing all parties expectations
• negotiating contractural negotiations carefully and transparently
What is a conflict management
Involves the use of tools and skills to find ways to manage disagremments
Why is avoiding conflicts important?
To uphold ethical credibility and fulfil legal responsibilities
What are the alternative dispute resolutions in relation to the Landlord and tenant competency ?
• negotiation
• mediation
• arbitration
What is the guidance note for Arbitrator?
RIcs guidance note for surveyors acting as Arbitrators in commercial rent reviews 2013
What is the RICs guidance note for Indepenant experts?
RICs guidance note for surveyors acting as independent experts in commercial property rent reviews 2014
PACT (Professional Arbitration on court terms what is it?
• form of ADR specific to lease renewals for commercial properties under the Landlord and tenant act
• via county court but only available if both parties agree
• can be before or after formal lease renewal court proceedings have been issued
• can be fast cost efficient and confidential solution compared with court proceedings
What is mediation?
• Involves a neutral mediator who facilitates discussions between the two parties to explore if a solution can be found
• confidential and informal process
• usually conducted on a ‘without prejudice” basis
• mediator has no decision making authority
What are the exceptions to the red book valuations? And what would need to be done before you do this?
• Litigation
• expert determination
• agency
It must be set out in the terms of engagement and that your client agrees that it is an exception
What are the different type of agencies and explain each
Sole agency - you are the only agent that markets and finds a site
Joint sole agency - 2 agents working independently but sharing a commission
Multi agency - when multiple agents work on marketing a property, whoever completes gets the fee
What is capped services?
Can be GAS OR water which exists but has been shut off
What is Net Internal Area?
Useable area within a building measured to the internal face of the perimeter wall
