Der Querdenker – VRV 2015, Evaluation of municipal assets

In October 2015, the Voranschlags- und Rechnungsabschlussverordnung 2015 (VRV) entered into force. This will lead to the introduction of a new budgetary law and will also require an account for all Austrian municipalities from 2019-2020.

What is to be evaluated?

The calculation of the value is aimed at both the collection of assets and the collection of the debts of a municipality. The following is an overview of the most important items in the financial statements, which must also be assessed.


  • Intangible assets, e.g. acquired licenses
  • Property, plant and equipment such as Land, infrastructure, buildings, water and drainage buildings, special equipment, technical equipment, vehicles, machinery, cultural assets, down payments, equipment under construction
  • Financial instruments including derivatives
  • Investments, receivables, inventories, cash and cash equivalents


  • Long-term liabilities (financial liabilities, lease obligations, provisions)
  • Short-term liabilities (financial liabilities, liabilities, provisions)


How to evaluate and how do I get an initial evaluation?

Municipalities are obliged to record assets. The rules and models for this are currently not yet final. For this reason, we will be very close to tried and tested procedures in the area of private companies and industries. As a rule, the principle of the individual valuation of all assets exists, whereby, in exceptional cases, fixed value procedures can also be used.

The following terms play a role in determining the value propositions:

  • Acquisition costs or production costs
  • Depreciation (scheduled / non-scheduled)
  • Net Present Value
  • Fair value

About external valuation…

The determination of the value itself can be carried out on the one hand by (1) internal or (2) external bodies. As a result, value reports must be prepared in each case, which must be prepared according to the appropriate criteria.

An internal assessment assumes functional and organizational measures in the municipality and can also lead to liability issues. An external evaluation requires the fulfillment of essential criteria by the external evaluator.

  • Exclusion of conflicts of interest
  • Presence of professional guarantees and regulations
  • Qualification, e.g. Adequate resources, adequate procedures, adequate knowledge, adequate experience, etc …


In practice, municipalities are essentially the value drivers in the area of property, plant and equipment as well as long-term liabilities. In our view, the objective valuation of the principal assets and liabilities can only be carried out by an external evaluator. Experts in the field of real estate and the financial industry are the main reason for this.

As FRC-Finance & RiskConsult GmbH, we are able to evaluate your financial assets (assets and liabilities) in accordance with long-standing procedures. A professional valuation of financial instruments usually also has an intensive impact on the valuation of the total assets and thus also on the creditworthiness and rating of your municipality.

Have we aroused your interest at this early stage? Please contact us for a non-binding first consultation at [email protected].

About The Author

Heinz Hofstaetter
Over 20 years of international experience in senior management positions in the areas of consulting, banking, finance, asset management, valuation and Real Assets.