Valuation Flashcards
Red Book PS1
compliance with standards
Red Book PS2
Ethics, competency, objectivity and disclosure
Red Book VPS1
TOE
Red Book VPS2
Inspections and investigations
Red Book VPS3
Valuation Report
Red Book VPS4
Base of value, assumptions and special assumptions
Red Book VPS5
Valuation approaches and methods
Red Book VPGA1
Inclusion in financial statement
Red Book VPGA2
Secured lending
Red Book VPGA3
Valuation of business and business interests
Red Book VPGA4
Valuation of trade related properties
Red Book VPGA5
Valuation of plant and equipment
Red Book VPGA6
Valuation of intangible assets
Red Book VPGA7
Valuation of personal property art and antiques
Red Book VPGA8
Valuation of real property intrests
Red Book VPGA9
Identification of portfolios collections and groups of properties
Red Book VPGA10
Matters causing material valuation uncertainty
Assumption
A supposition taken to be true
Special Assumption
A assumption assuming facts differ from actual facts
Income approach
Convert future cash flow into a single capital value
Marriage value
A additional element of value created by a combination of assets
Market Value
The estimated amount for which an asset or liability should exchange on valuation date between a willing buyer and a willing seller in a arms length transaction after property marketing with both parties acting knowledgeably prudently and without compulsion
What is gross development value
Market Value of the proposed development assessed on the special assumption that the development is complete
What does IVS stand for
International valuation standards
Can a red book report be relied upon by third parties
A report can be relied upon by the client and any other parties as agreed in the terms of engagement
Conflict of intrest
Information barrier - no one can acces it
basis of value
Market Value
Market rent
investment value
fair value
A statement of the fundamental measurement assumptions of a valuation.
In some jurisdictions, the basis of value is also known as the ‘standard of
value’.
Investment Value
The value of an asset to the owner or a prospective owner for individual
investment or operational objectives
Fair 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.’
Depreciated replacement method
The method of last resort
Used for specialist assets
DCF
estimates the value of a investment using cash flow.
It is a type of the investment method that allows for changes and variables.
implicit investment methods
ary capitilisation.
term and reversion
Benefits of the Red Book
IT provides guidance when undertaking valuation work.
Helps you to achieve high standards of integrity, clarity and objectivity adopting valuation best practice.
Protects PI insurance and negligent claims
Maintains regulatory and legal compliance.
Sets out core standardised procedures and reporting standards.
Hope value
An element of market value in excess of the existing use value, reflecting the prospect of some valuable future use.
