Definitions Flashcards
Summary of experience: level one
Can you define Market Value?
The estimated amount for which an asset or liability should exchange on the valuation date
* between a willing buyer and willing seller
* in an arm’s length transaction,
* after proper marketing
* and where the parties had each acted knowledgeably, prudently and without compulsion
Summary of experience: level one
Can you define Market Rent?
The estimated amount for which an interest in real property should be leased on the valuation date
- between a willing lessor and a willing lessee
- on appropriate lease terms
- in an arm’s length transaction,
- after proper marketing
- and where the parties each acted knowledgeably, prudently and without compulsion.
Summary of experience: level one
What is Fair Value?
Valuation for inclusion in financial statement. This is an IFRS 13 definition. It is broadly accepted to be similar to the definition of Market Value:
‘The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.’
Summary of experience: level one
What is synergistic value?
This is the perceived value gained from combining two separate assets into one asset. The added value is referred to as marriage value.
Summary of experience: level one
What is investment value and what is it often called?
Investment value is the perceived value of an asset unique to that particular investor, based on their individual investment or operational objectives.
Assumption 1:
Property is available to let on open market by willing tenant to willing landlord for a stated term of years
Assumption 2:
Property is fit and available for immediate occupation and use
Assumption 3:
All covenants observed by landlord and tenant
Assumption 4:
Used for purpose set out in lease
