The different purposes for which valuations may be required Flashcards Preview

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Flashcards in The different purposes for which valuations may be required Deck (3)
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1

What classifications of valuation are there?

Valuations for financial statements – comply with UKGAAP, International Financial Reporting Standards (IFRS) = set out in VPGA1, Valuation for inclusion in financial statements, and IVS 300

Valuations for links to specific types of financial statements and are regulated purpose valuations (see UKVS 4); such as stock exchange documents, takeovers and mergers, investment schemes, unit trusts, margins of solvency of financial institutions

Valuations for residential mortgage purposes. UKVS3 includes the RICS Residential Mortgage Specification and guidance on home finance products, shared equity schemes, and other RICS services

Valuations for commercial secured lending have to comply with IVS310

2

What can a valuation provide?

Assessment of market value of legal interests in a specific parcel of real estate, which is transferrable freely in an open market within a given set of parameters

3

What should take place if a valuation is commissioned for a purpose that is not specifically mentioned in any RB valuation standard?

The general principles of the global standards should be applied and the specific requirements noted in the terms of engagement (see VPS 1)