Originally Posted by
traineeinvestor
I know this has been discussed before on the CDI/CDL thread, but the development properties should not be included in the accounts at fair market value. The nature of their business means that these properties will be sold and, as developers, they will eventually have to pay tax on the difference between cost and sale price (and less relevant expenses). Including those properties at current fair market value would therefore overstate the value of the assets to shareholders by the amount of the tax.
The investment properties which CDI/CDL is adding to its balance sheet are, of course, another matter entirely. They're currently included at cost but IMHO should be restated to fair market value in line with property investment companies. Right now it's (probably) not particularly significant but I hope this part of CDI/CDL's business will grow over time.