Valuation (1)

Question 1

Examples of conflicts of interest in valuation

Answer 1

1. Acting for the buyer and seller of a property or asset in the same transaction.
2. Valuing for a lender where advice is also being provided for the borrower.
3. Acting for two or more parties competing for an opportunity.

Question 2

What is IFRS 16?

Answer 2

The full cost of leases have to be accounted for on the balance sheet. An occupiers obligation to pay rent has to be recognised as a liability, though service charge payments would be accounted for separately.

Question 3

What is an external valuer?

Answer 3

A valuer who, together with any associations, has no material links with the client.

Question 4

VPS 1-5 is mandatory for all valuations except for the following

Answer 4

Statutory purposes
Agency and brokerage
Internal accounts
Negotiation and litigation
Expert witness

Question 5

PS 1

Answer 5

Compliance with standards and practice statements where a written valuation is provided

Question 6

PS 2

Answer 6

Ethics, competence, objectivity and disclosures

Question 7

VPS 1

Answer 7

Terms of engagement

Question 8

Part 5 - RICS Red Book

Answer 8

Valuation Practice Guidance Applications - VPGAs

Question 9

VPGA 1

Answer 9

Valuation for inclusion in financial accounts

Question 10

VPGA 2

Answer 10

Valuation for secured lending

Question 11

VPGA 8

Answer 11

Valuation of real property interests

Question 12

VPGA 10

Answer 12

Matters that may give rise to material valuation uncertainty