AGI reported its property holdings in its 2024 Annual Report to be worth AUD$68.65m (USD$44.80m). The attached valuations suggest a Market value of USD$76.0m. That's a mere 69.6% difference or AUD$0.19 per share!
AGI states in its annual report that its accounts are prepared on an Historical Cost basis.
The Australian accounting standards for Property Plant and Equipment are quoted and attached below;
"The frequency of revaluations depends upon the changes in fair values of the items of property, plant and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying amount, a further revaluation is required. Some items of property, plant and equipment experience significant and volatile changes in fair value, thus necessitating annual revaluation. Such frequent revaluations are unnecessary for items of property, plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue the item only every three or five years. "
AGI adjusts its property values annually to account for currency fluctuation but this does not negate the large delta between market and book value. There is no known record of a revaluation of property since purchase.
Did the Auditors pick up on the property value discrepancy? It appears not according to the 2024 Annual Report! Attached are the Audit standards on Materiality in Planning and Performing an Audit.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)