BVAEA should stop interfering, says action group

The ongoing tussle for the right to manage stratified properties has gone right up to the ministerial level with an action group asking the housing minister to intervene.

The Valuers, Appraisers and Estate Agents Joint Action Group (the action group) complained to Minister of Housing and Local Government Datuk Seri Ong Ka Chuan that the Board of Valuers, Appraisers and Estate Agents (the Board) continues to interfere in the affairs of Joint Management Bodies (JMBs) and Management Corporations (MCs) and advises parcel owners to only appoint Board-registered valuers as managing agents.

On Jan 19, an 18-member delegation led by the action group's chairman Datuk Teo Chiang Kok had a one-hour meeting with Ong. Teo claimed the housing ministry, upon the request of the finance ministry (which the Board comes under), had reportedly advised all Commissioners of Buildings (COBs) to engage the services of Board-registered valuers as advisers to assist them in managing the stratified properties presently under JMBs.

The group claimed the COBs were asking JMBs to engage the services of Board-registered valuers as managing agents for their respective subject properties.

The group, which submitted a two-page memorandum on these core issues, advised Ong that the issue whether or not a licence from the Board is required to manage stratified properties was now before the courts of law for interpretation and final decision.

According to an e-mailed statement, the action group reported that Ong was aware of the existence of "grey areas" in the laws pertaining to building and facilities management and had asked his legal officers to liaise with the Attorney General to obtain clarifications on these as well as other related matters.

The statement said the minister would check with his officers whether or not any correspondence to that effect had been received from the finance ministry, and whether subsequent follow-up correspondence had been sent by the housing ministry to the COBs.

The statement further claimed Ong agreed with the action group that property management, being a multi-disciplinary function, could not be the exclusive preserve of valuers, and that it be open to all stakeholders, interested parties and professional groups, including but not limited to developers, engineers, architects, shopping complex and highrise building managers, residents associations, JMBs, MCs and whoever with the expertise, ability and experience to manage and maintain stratified properties.

"The owners have the right to appoint managing agents of their choice on terms and conditions and remuneration mutually acceptable to the contracting parties," the statement quoted Ong.

He assured the delegation that his ministry would do everything within its means to ensure the stakeholders are given equal and fair access to building and facilities management without any interference from third parties.

Making a Profit Balance

Accountants are responsible for preparing three primary types of financial statements for a business. The income statement reports the profit-making activities of the business and the bottom-line profit or loss for a specified period. The balance sheets reports the financial position of the business at a specific point in time, ofteh the last day of the period. and the statement of cash flows reports how much cash was generated from profit what the business did with this money.

Everyone knows profit is a good thing. It's what our economy is founded on. It doesn't sound like such a big deal. Make more money than you spend to sell or manufacture products. But of course nothing's ever really simple, is it? A profit report, or net income statement first identifies the business and the time period that is being summarized in the report.

You read an income statement from the top line to the bottom line. Every step of the income statement reports the deduction of an expense. The income statement also reports changes in assets and liabilities as well, so that if there's a revenue increase, it's either because there's been an increase in assets or a decrease in a company's liabilities. If there's been an increase in the expense line, it's because there's been either a decrease in assets or an increase in liabilities.

Net worth is also referred to as owners' equity in the business. They're not exactly interchangeable. Net worth expresses the total of assets less the liabilities. Owners' equity refers to who owns the assets after the liabilities are satisfied.

These shifts in assets and liabilities are important to owners and executives of a business because it's their responsibility to manage and control such changes. Making a profit in a business involves several variable, not just increasing the amount of cash that flows through a company, but management of other assets as well.