Summary Q's Flashcards
What are Company Accounts?
Company accounts are a summary of an organisation’s financial activity over a 12 month period. They are prepared for Companies House and HM Revenue & Customs every year and consist of the Balance Sheet, the Profit and Loss Statement, and the Cash Flow Statement.
What are Management Accounts?
Management accounts are financial reports produced for the business owners and managers, generally monthly or quarterly, normally a Profit & Loss report and a Balance Sheet. In principle they are similar to Year End accounts but are less formal
What is a Profit & Loss account/statement?
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period
What is a Balance Sheet?
A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time.
Name the rules of conduct for Members 2020 amended?
ESC CPD SIC
Ethical Behaviour competency high service standard CPD Solvency Information to RICS Cooperation
Name the rules of conduct for firms 2020 amended?
2 Parts, part 1 is rules of conduct for business:
PCS CPD CCI
Proffessional Behaviour Competence Service CPD Complaints Handling Clients Money Indemnity Insurance
Part 3 is “Firm Administration”
Advertising (thruthfull)
Solvency
Arrnagement to cover death if sole practicioner
Use of Designaitons
Information to the RICS (submit info as and when required)
Cooperation (any rics staff or regulatory board)
What are the RICS 5 core values and give me a few examples of where you have adopted them?
Promote Trust within the Proffession
High level of service
Integrity
Respect
Responsibility
What are the CPD requirements for members
20 Hours anjually to be logged online. At least 10 hours formal. CPD undertaken to enhance knowledge and to keep members upto date with changes.
Ethical stanards completed at elast 1x every 3 years
How do you undertake a conflcit check? What conflcits do you look for?
Email around the office.
Looking for personal conflicts, party conflicts, or confidential information.
Anythingt hat may impact giving inpartial advice.
Give me an example of a conflcit you have had
I was marketing a leasehold premisis in Durham and approached by a tenant who we are retained to act for to aquire. Given i was acting for the landlord already and duel agency is prohibited. I turned down the tenant and advised they seek another representivie to produce with as the conflcit could not be managed effectivley. I notified my client landlord and got written informed consent so they udnerstood the rpevious relashionship
What proffessional statements cover conflcits of interest?
Conflicts of interest – UK commercial property market investment agency (2017)
Conflicts of interest (2017)
Both effective from Jan 2018
What guidance do you follow for Money Laundering / terrorist financing matters
Money Laudnering (Information on the payer) Regulations 2017 (Legislation)
and RICS PS Countering bribery andcorruption, money launderingand terrorist financing 2019
Talk me though AML checks you udnertake
For every new instruciton, even if client is existing we undertake customer due dilligence - ID checks, residence checks, and online checks using creditsafe, then store them on file for 5 years.
You mention a customer didnt provide information for AML checks, walk me through?
As goverend by legislation and the mandatory proffessional statement on money laundering, we dont undertake nay work unless satisfied with checks on a client. The client for this instruction was on holiday and unable to provide proof of address until they retunred to the country. We inststed we could not udnertake work until we were atisfied and advised we had to wait until recieved. If the client still would not provide and was avasive, i would inform our money laudnering officer to log and report.
Talk to me about the bibery incident in south sheilds
Whilst culture isnt justification, the proposed tenant wanted me to reveal bid information for free services. As accepting or failing to report a bribe is punishble offence with unlimited fine and potential prison sentance, ir eproted to my senior managers for logging on file for future dealings, and alerted my client.
What legislation do you follow for Health and Saftey at work?
the Health and Safety at Work Act 1974 outlines the legal duties that employers have to protect the health, safety and welfare at work of all of their employees. … The HSE also enforces the penalties which can be given should employers not meet their responsibilities. Enforced by Health and Saftey Executive/local authority.
1) Adequate training of staff to ensure health and safety procedures are understood and adhered to
2) Adequate welfare provisions for staff at work
3) A safe working environment that is properly maintained and where operations within it are conducted safely
4) Suitable provision of relevant information, instruction and supervision
How does your employer ensure saftey?
Follow guidance in the Surveying safley 2018 guidance note (PPE equipment and company policy on site visits)
undertake workstation assessments as required udner Display Screen Equipment Regulations.
Lone working Policy
Talk me through Surveying safley 2018 guidance note
Highlights best practice for health and saftey for property proffessioans.
Highlights undertaking risk assessments to assess hazards. Occupational hygene, guides for site visits (charged mobile, emergancy contact, let colelgues know whaere you are, cautious if property condition poor, PPE )
What is the benifit of inclusive environments and how do you ensure youre incusive ar work.
In an inclusive work culture, people feel respected and valued, this can increase teamwork, productivity, and ultimialty lead to the best service for clients.
At work and as guided by the equalities act 2010 as a firm and individuals we dont discriminate employees, clients, or anyone due to differences such as sex, religion, belifs etc.
Talk me through MEES
Came into effect april 2018.
Unlawful to let a property with an EPC of less than E (F or G). EPC’s must be renewed every 10 years and displayed on amrketing material.
From 1st April 2023, MEES will be extended to cover all leases, including where a lease is already in place.
MEES not relevent to leases of 6 months less or 99 years+.
Exemptions only if not cost effective, consent to udnertake improvment works denied.
Penalties will be based on the rateable value of the property, up to a maximum of £150,000
What does BRE EAM stand for.
Building Research Establishement, Energy Asessment Method.
It provides independent third party certification of the assessment of the sustainability performance of individual buildings. Not just environmentally, but socially, economically etc. Many criteria. Helps a company reach CSR goals and can increase property value.
Outstanding: Less than top 1% of buildings (innovator) Excellent: Top 10% of buildings (best practice) Very Good: Top 25% of buildings (advanced good practice) Good: Top 50% of buildings (intermediate good practice)
What is the profts method of valuation?
Usually used for trade potential site such as pubs, nurseries, leasuire sites, hotels.
Used audited accounts for 3 years.
Income recieved - costs = Gross Profit.
Gross profit - working expenses = Unadjusted net profit
Unadjusted net profit - operators renumeration = Adjusted net profit (Fair Maintanbale Operating Profit).
Then capitalise using a yeild (years purchase)
What is the residual method of Valuation?
It assess financial viablity of devloping a site.
It quates site value and allows to see profitibility using adjusted factors.
In simple form Land/Property = GDV – (Construction + Fees + Profit)
Uses comparable method to see rental income if ocmmercial, at the appropriate yeild.
Building Costs – gross area used with associated items such as site clearance , demolition etc. * Professional Fee – 12 and 15% of construction cost. * Finance – for total building cost, land cost and professional fee* Advertising and Marketing- depends on the program, 0.5% to 1% of GDV* Voids and Contingencies – empty after the development is completed. 3 – 5% o n building cost * Developer’s Profit and Risk – 15 – 20% on GDV or 20-25% on total cost
What is the DRC method of valaution?
Depretiated Replacement Cost (also known as contractos method), where direct evidence is limited such as lighthouses, schools, libaries. Can be used for owner-occupied, accounts, or rating valuations.
Method:
Value of land in exisitng use and add on cost of replacing the building (BCIS estimate) plus associated fees of works, and minus obsolensence e.g wear and tear or changes in the market.
