Please note, this document was reissued in July 2024 as a professional standard. It was previously published in November 2018 as a guidance note. The regulatory requirements remain the same.
The purpose of this UK professional standard is to draw attention to matters relevant to the use of the depreciated replacement cost (DRC) method of valuation.
The ‘cost approach’ and DRC method are regarded as synonymous terms; both are in common use around the world to describe a method of valuation of all types of assets. This professional standard also highlights the reporting requirements outlined in RICS Valuation – Global Standards 2017 – UK national supplement (RB UK) that are particularly relevant when the DRC method has been used.
Published date: 13 November 2018
