Valuation of the Union's Real Estate Assets

An Approach for Its Improved Accounting to be Evidenced in the Union General Balance Sheet

Abstract

The Union's property laws and public accounting standards require the technical evaluation of real estate assets registered in the Secretariat of Union Property (SPU) system to update the Union General Balance (BGU). This obligation poses a significant challenge for the SPU, responsible for the Special Use Real Estate Management System (SPIUnet), vital to the Integrated Financial Management System (SIAFI). Although obtaining the market value of certain properties is costly for the public sector, this information often does not effectively reflect the value of the properties, limiting its utility. This document suggests a comparative analysis between market value and the reference value adopted by the SPU, followed by a new approach that considers the competencies of management units for more effective management of public property values in the BGU.