Depreciated replacement cost method of valuation for financial reporting

Published November 2018
Effective from January 2019
Reissued July 2024

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 standard also highlights the reporting requirements outlined in RICS Valuation – Global Standards: UK national supplement (RB UK) that are particularly relevant when the DRC method has been used.