Victory Co has an investment property that is measured at fair value. This property is rented out on short$-$term leases. The directors wish to fair value the property by estimating the present value of the net cash flows that the property will generate for Victory Co They argue that this best reflects the way in which the building will generate economic benefits for Victory Co$.$ The building is unique, although there have been many sales of similar buildings in the local area.

Required

Discuss whether the valuation technique suggested by the directors complies with International Financial Reporting Standards.