Valuation

Question 1

What is an Internal Valuer?

Answer 1

• Employed by a company to value the assets of the company/enterprise
• Valuation for internal use only
• No third-party reliance

Question 2

What is an External Valuer?

Answer 2

• Has no material links with the asset to be valued or the client

Question 3

What are THREE important steps to first undertake before commencing a valuation instruction?

Answer 3

1. Competence
2. Independence
3. Terms of Engagement

Question 4

What is the significance of Terms of Engagement?

Answer 4

• Set out in writing your full confirmation of instructions to the client prior to starting work and receive written confirmation of instruction.
• Confirm the competence of the valuer
• The extent and limitations of the valuer’s inspection must be stated

Question 5

Why is statutory due diligence done for valuations?

Answer 5

This is required to check that there are no material matters which could impact upon the valuation