12. VPS 6 - Valuation reports

Question 1

What VPS 6?

Answer 1

Valuation Reports

Question 2

There are 17 minimum requirements for a valuation report. What are they?

Answer 2

1) Identification and status of the responsible valuer
2) Client and any other intended users
3) Purpose of the valuation
4) The asset(s) to be valued
5) Basis of value
6) Valuation date
7) Extent of investigation
8) Nature & source(s) of information
9) Assumptions and special assumptions
10) Restrictions on use, distribution and publication
11) Instruction undertaken in accordance with IVS and/or Reb Book Global Standards
12) Valuation approach and reasoning
13) Valuation figure(s)
14) Date of Valuation Report
15) Comment on any market valuation uncertainty in relation to the valuation
16) Statement setting out any limitations on liability that have been agreed
17) Significant ESG factors considered (new in the 2024 edition)

Question 3

What are the requirement differences between a red book instruction and a red book valuation report?

Answer 3