Valuation VGPA 2 Flashcards
What does VPGA 8 cover?
VPGA 8 covers inspections and investigations, with particular emphasis on ESG and specific environmental constraints and sustainability issues.
What are the direct valuation factors in ESG and Sustainability?
Direct valuation factors include storm or flood risk.
What are the indirect valuation factors in ESG and Sustainability?
Indirect valuation factors include resilience or carbon emissions.
What are the physical risks in ESG and Sustainability?
Physical risks include risks through heat or wildfire.
What are the transition risks in ESG and Sustainability?
Transition risks include regulatory change or carbon emissions.
What additional information must be reported in a valuation report?
Additional information includes disclosure of any involvement identified in the terms of engagement, valuation methodology adopted, recent transaction information, environmental considerations, suitability for mortgage purposes, and any circumstances affecting price.
What must a valuer comment on if a special assumption is used?
The valuer must comment on any material difference between the reported value with and without that special assumption.
What is the overriding requirement for a valuation report?
The overriding requirement is that a valuation report must not be misleading.
What should the valuer do regarding material valuation uncertainty?
The valuer should clearly draw attention to, and comment on, any issues resulting in material uncertainty in the valuation.
What do the ‘General Standards’ in International Valuation Standards address?
The ‘General Standards’ address matters such as terms of engagement, approaches to and bases and methods of valuation, as well as reporting.
What is the relationship between the Red Book Global and the UK National Supplement?
The UK National Supplement augments the Red Book Global requirements for valuations in the UK and is not a substitute for it.
When was the latest UK Supplement published?
The latest UK Supplement was published in October 2023 and came into effect on 1st May 2024.
