Are appraisal fees incurred for revaluing capital property, in order to prepare annual financial statements in accordance with IFRS, deductible as current expenses? CRA responded:
[I]n general, the reasonable expenses incurred by a taxpayer in valuing capital property for the purpose of its acquisition or disposition are an addition to the adjusted cost base of that property by virtue of 53(1)(n).
Furthermore … reasonable expenses incurred in valuing capital property for the purpose of preparing the annual financial statements in accordance with the applicable new accounting standards would generally be deductible as a current expense.