Charity - Property Valuation


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I am working (as a volunteer) with a charity.

The charity owns property and land with a value in excess of £1.5 million (estimated by estate agent/valuer), but the accounts only show assets on the balance sheet at £49K.

The accountant tells us that using historical cost is the standard method of recording values of assets, but surely this is not showing the actual "state of affairs" of the charity, or am I wrong?

We want to apply for a large lottery grant to refurbish the property, but would they want to spend £500K on a building that only has a £49K value in the accounts?

Would re-valuing the asset incur a capital gains liability if its a charity?
 
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