Valuation

Question 1

Red Book PS1

Answer 1

compliance with standards

Question 2

Red Book PS2

Answer 2

Ethics, competency, objectivity and disclosure

Question 3

Red Book VPS1

Answer 3

TOE

Question 4

Red Book VPS2

Answer 4

Inspections and investigations

Question 5

Red Book VPS3

Answer 5

Valuation Report

Question 6

Red Book VPS4

Answer 6

Base of value, assumptions and special assumptions

Question 7

Red Book VPS5

Answer 7

Valuation approaches and methods

Question 8

Red Book VPGA1

Answer 8

Inclusion in financial statement

Question 9

Red Book VPGA2

Answer 9

Secured lending

Question 10

Red Book VPGA3

Answer 10

Valuation of business and business interests

Question 11

Red Book VPGA4

Answer 11

Valuation of trade related properties

Question 12

Red Book VPGA5

Answer 12

Valuation of plant and equipment

Question 13

Red Book VPGA6

Answer 13

Valuation of intangible assets

Question 14

Red Book VPGA7

Answer 14

Valuation of personal property art and antiques

Question 15

Red Book VPGA8

Answer 15

Valuation of real property intrests

Question 16

Red Book VPGA9

Answer 16

Identification of portfolios collections and groups of properties

Question 17

Red Book VPGA10

Answer 17

Matters causing material valuation uncertainty

Question 18

Assumption

Answer 18

A supposition taken to be true

Question 19

Special Assumption

Answer 19

A assumption assuming facts differ from actual facts

Question 20

Income approach

Answer 20

Convert future cash flow into a single capital value

Question 21

Marriage value

Answer 21

A additional element of value created by a combination of assets

Question 22

Market Value

Answer 22

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

Question 23

What is gross development value

Answer 23

Market Value of the proposed development assessed on the special assumption that the development is complete

Question 24

What does IVS stand for

Answer 24

International valuation standards

Question 25

Can a red book report be relied upon by third parties

Answer 25

A report can be relied upon by the client and any other parties as agreed in the terms of engagement

Question 26

Conflict of intrest

Answer 26

Information barrier - no one can acces it

Question 27

basis of value

Answer 27

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’.

Question 28

Investment Value

Answer 28

The value of an asset to the owner or a prospective owner for individual investment or operational objectives

Question 29

Fair value

Answer 29

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.’

Question 30

Depreciated replacement method

Answer 30

The method of last resort Used for specialist assets

Question 31

DCF

Answer 31

estimates the value of a investment using cash flow. It is a type of the investment method that allows for changes and variables.

Question 32

implicit investment methods

Answer 32

ary capitilisation. term and reversion

Question 33

Benefits of the Red Book

Answer 33

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.

Question 34

Hope value

Answer 34

An element of market value in excess of the existing use value, reflecting the prospect of some valuable future use.