Buyers & lenders have the right to know the fair value of their entire investment. Co-op shareholders buy a proportionate share of the entire corporation. The overlying mortgage balance is sometimes correctly listed as an item on the standard appraisal form, but this does not tell the whole story. Cash reserves, other assets & liabilities also vary between corporations and add informative value. While some of this information is listed in the corporation’s financial statements & most of this is already at fair value (or close to fair value), current U.S. GAAP financial statements list the property value at historical cost rather than at fair market value.
This is great if your building is 2 years old, but not if it’s 30 years old. Appraisers should be required to estimate the total fair value of the corporation, & to include the unit’s proportionate share on the appraisal form to facilitate apples-to-apples comparison. (The new IFRS accounting standard could help here; if a Board chooses to implement this standard, they’ll have the option of listing the building at fair value.)