It is registered
Ministry of Justice
Republic of Uzbekistan
On December 28, 2023 No. 3487
of October 25, 2023 No. 01/11-14/29
About approval of the Single national standard of assessment of the Republic of Uzbekistan
According to the Law of the Republic of Uzbekistan "About estimative activities", the Presidential decree of the Republic of Uzbekistan of February 28, 2023 "About the State program on strategy implementation of development of New Uzbekistan for 2022 - 2026 in "Year of care of the person of quality education" and the resolution of the President of the Republic of Uzbekistan of March 24, 2023 No. PP-101 "About measures for the effective organization of activities of the Agency on management of the state assets" I order to No. UP-27:
1. Approve the Single national standard of assessment of the Republic of Uzbekistan according to appendix.
the order of the director of the Agency on management of the state assets of the Republic of Uzbekistan of May 1, 2020 No. 01/11-15/62 "About approval of the Single national standard of assessment of the Republic of Uzbekistan" (рег. No. 3239 of June 4, 2020) (The national database of the legislation, 04.06.2020, No. 10/20/3239/0721);
the order of the director of the Agency on management of the state assets of the Republic of Uzbekistan of March 4, 2022 No. 01/11-14/16 "About modification of the Single national standard of assessment of the Republic of Uzbekistan" (рег. No. 3239-1 of March 14, 2022) (The national database of the legislation, 14.03.2022, No. 10/22/3239-1/0216).
3. This order becomes effective since January 1, 2024.
Director
A. Ortikov
|
It is approved: Chairman of association of the estimative organizations October 24, 2023 |
A. Islamov |
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Director of society of appraisers October 24, 2023 |
F.Mirsoatov |
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Chairman of society of appraisers, experts and consultants of Uzbekistan October 24, 2023 |
Z.Nigmankhanov |
Appendix
to the Order of the Director of the Agency on management of the state assets of the Republic of Uzbekistan of October 25, 2023 No. 01/11-14/29
This Single national standard of assessment of the Republic of Uzbekistan (further - ENSO) determines normative regulation of estimative activities, and also establishes requirements to procedure for evaluating and examination of assessment.
1. This ENSO includes general standards of assessment, and also the special standards of assessment and technique to them establishing the minimum methods necessary for value assessment of specific objects of assessment.
2. General standards of assessment determine general requirements to procedure for evaluating all types of objects of assessment and examination of valuation reports.
3. General standards of assessment consist of the following National standards of assessment (further - sales tax):
No. 1 sales tax "Terms, determinations and principles of estimative activities";
No. 2 sales tax "Task for assessment";
No. 3 sales tax "The studying and analyses which are carried out in the course of assessment";
No. 4 sales tax "Valuation report and procedure for its creation";
Sales tax No. 5 "Cost types";
No. 6 sales tax "Approaches and evaluation methods";
No. 7 sales tax "General requirements to internal regulations of quality control of work of appraisers";
No. 8 sales tax "Examination of reliability of the valuation report".
4. Special standards of assessment determine additional requirements to procedure for evaluating separate types of objects of assessment (business, the real estate, intangible assets, inventory stocks, etc.).
5. Special standards of assessment consist of the sales tax following:
No. 9 sales tax "Value assessment of business and participation rights in business";
No. 10 sales tax "Real estate value assessment";
No. 11 sales tax "Value assessment of intangible assets and intellectual property items";
No. 12 sales tax "Value assessment of inventory stocks";
No. 13 sales tax "Value assessment of machines and equipment";
No. 14 sales tax "Value assessment of the state housing stock for the purposes of privatization";
No. 15 sales tax "Value assessment of vehicles".
6. The basic principles of ENSO are:
the principle of observance of requirements of the standard - this ENSO intends for appraisers, the estimative organizations and other users, and is obligatory to application when rendering services of asset valuation and obligations, creation of the valuation report, and also when checking by experts of reliability of the valuation report of object of assessment. If, it is specified that assessment is carried out or it will be carried out according to this ENSO, it means that the value assessment is prepared or to prepare according to requirements of the national standards of assessment (NSA) of this ENSO.
the principle of application of the standard when evaluating assets and/or obligations - means obligation application of this ENSO in case of asset valuation, obligations or groups of assets and liabilities;
the principle of objectivity - the process of assessment demanding from the appraiser of forming of objective judgments of reliability of basic data, assumptions and results of assessment. For ensuring reliability of results of assessment, these judgments shall be developed taking into account transparency and possibility of the minimum impact of any subjective factors on process of assessment;
the principle of qualification - the value assessment of object of assessment shall be made by the appraiser having the appropriate qualification certificate of the appraiser and having necessary skills, experience, knowledge of assessment object, the market of its turnover and the purposes of assessment;
the principle of departures - compulsory measure in the course of assessment according to which to the appraiser, it is necessary to fulfill the requirements of the legislation different from requirements of this ENSO. In this case it is considered that assessment is carried out according to this ENSO. Other departures from requirements of this ENSO are not allowed.
the principle of independence - the estimative organization in the activities is independent. Intervention of the customer or other interested persons in activities of the estimative organization is not allowed.
7. The national standard of assessment "Terms, determinations and the principles of estimative activities" (further - No. sales tax 1) being integral part of ENSO establishes the basic principles, terms and determinations used in estimative activities.
8. By sales tax No. 1 it shall be applied in case of cost determination of property of any patterns of ownership, cost types, identification of object of assessment, the choice of approaches and evaluation methods, creation of the valuation report.
9. In this ENSO the following terms and determinations are used:
working capital (working capital) - the part of the capital of business entity enclosed in current assets, i.e. in assets concerning which there is basis to believe that they will be sold or consumed during production process within the year or normal operating cycle exceeding (owing to specifics of the production technology) year;
asset or liability - assessment objects specified in task for assessment. If other value of the concept "asset or liability" is not provided in this ENSO, its application is provided in values "asset or groups of assets", "obligation or groups of obligations", and also "groups of assets and liabilities";
reproduction cost (replacement cost) - cost amount, spent for creation of the new object identical to assessment object, with use of identical materials and technologies (in the market prices which developed as of date of assessment);
analog - other object close to assessment object according to the main economic, physical, technical and other characteristics on which there is price information to the bargain concluded in the competitive market or to the offer;
object analog - identical object or analog, information on which is used in the course of assessment.
the term of exposure of object of assessment - period of time, since date of representation on the public market (the public offer) of assessment object before date of transaction with it;
task for assessment - the prisoner in writing between the customer of assessment and the estimative organization the document containing conditions of rendering services and initial information which the customer shall provide to the appraiser for evaluating object of assessment;
approach to assessment - cost determination of object of assessment with use of one or several evaluation methods;
assessment purpose - the intended use of results of assessment specified in task for assessment, reflecting the reasons in connection with which there was need of cost determination (market or other than market) assessment object;
assessment object - objects of the civil laws concerning which the legislation establishes possibility of their stay in civil circulation the estimates included in objects in the Law of the Republic of Uzbekistan "About estimative activities".
the final size of project cost of assessment is the most probable size of cost received by the appraiser as result of generalization of results of calculations of project costs of assessment when using different approaches and evaluation methods;
evaluation method - the procedure used by the appraiser for cost determination of object of assessment;
date of assessment - date for which assessment project cost is determined;
examination of reliability of the valuation report (examination of assessment) - carrying out by the estimative organization, according to the legislation on estimative activities and the contract with the customer of examination, check of reliability of the valuation report, without carrying out repeated assessment of object of assessment;
the valuation report - represents the document constituted by the appraiser according to requirements of ENSO and containing its professional judgment of rather total cost of object of assessment formulated on the basis of collected information, the carried-out analysis and calculations according to task for assessment;
the appraiser - the physical person having the qualification certificate of the appraiser issued by authorized body according to the legislation on estimative activities;
the estimative organization - the legal entity performing estimative activities;
professional public associations of the estimative organizations - the non-state non-profit organizations based on membership at least fifty estimative organizations, acting for the purpose of assistance to increase and maintenance of professional level of appraisers, protection of their professional interests, including in courts;
the customer - person who signed the contract for evaluating with the estimative organization;
weight coefficient - level of credibility to indicator of the determined estimated value of object of assessment in the course of forming of the conclusion about total cost;
goodwill - the intangible asset resulting from impact of factors (popularity of the name of the company and products, availability of certain reputation and business contacts, location and other similar factors) which cannot be identified and estimated separately from the company;
field examination - the examination including inspection of the estimated property with departure on object of assessment and inspection of comparable objects of property for confirmation of the data provided in the valuation report when conducting examination of assessment;
real estate in the course of development - the earth and/or buildings in the course of works on construction, reconstruction or repair or planned for such works in the near future;
discount rate - the interest rate used for recalculation of future cash flows in the single size of current value;
current value - the cost of future income specified for certain date with use of the corresponding discount rate;
intellectual property item (intellectual property) - results of intellectual activities of physical person or legal entity, and also exclusive right of participants of civil circulation on the means reflecting features of goods, works and services;
the participant (participants) - the corresponding participant or participants according to the cost types determined in task for assessment;
capitalization rate - divider, as a rule, expressed in percentage terms, used for transformation of size of the income for certain period in cost;
follows (recommendation) - specifies preferable actions of the appraiser. In each case the appraiser considers the possibility and feasibility of accomplishment of the requirement and in the presence of the bases has the right to refuse its accomplishment;
project cost of assessment (cost) - the assessment object value measure for participants of the market or particular persons expressed in cash, determined for the specific date which is not meaning the actual transaction price;
shall - specifies unconditional obligation of the appraiser to fulfill certain requirement. The appraiser shall fulfill the requirement when such specifying in ENSO takes place;
the animator - the coefficient reflecting ratio between the price of object of assessment and the financial, production or material indicator characterizing its activities;
can (not obligatory) - specifies actions and procedures which are not obligatory for accomplishment from the appraiser within the competence. In this case the appraiser on the basis of professional judgment has the right to use or not to use this or that opportunity;
the price - the cash or other remuneration requested, offered or paid for asset which can differ from its cost;
cash flow - the cash flow created during the period of time by asset, group of assets or the company;
retrospective assessment - assessment executed by the appraiser for the corresponding date of last period. Calculations and information on the given analogs to which the appraiser refers by preparation of the valuation report shall correspond to date for which assessment is carried out. If necessary current prices of analogs are given to date of assessment taking into account normative data (currency rates (according to the Central bank of the Republic of Uzbekistan) or indexation (according to National committee of the Republic of Uzbekistan according to the statistics) or inflation (according to the Central bank of the Republic of Uzbekistan)). At the same time the appraiser chooses one of the most suitable normative indicators depending on characteristics and features of object of assessment and proves this choice in the valuation report. For receipt of cost of analog for certain date in the past, today's cost of analog is indexed on one of the above-stated indicators chosen by the appraiser in the course of assessment;
royalty - payment which the buyer of the franchize regularly pays the companies for what uses its brand, experience, goodwill and technology;
powerful/considerable/serious (or important) - the importance of estimative aspects from the point of view of task for assessment (including starting data, assumptions, and also methods and approaches which can be applied), their applications and/or their impact on assessment exerting impact on economic or other decisions of users of assessment;
net assets - difference between total assets and cumulative obligations;
risk-free rate - interest return rate which the investor can receive on the capital, in case of investment in the quickest assets which are characterized by absence or the minimum possible risk of not return of invested funds;
cost - set of purchase costs, creation, production and sales of goods, works or services;
analytical examination - the examination performed based on data analysis, provided in the valuation report which is carried out for check of compliance of cost type to the purposes of assessment, justification of the data used in assessment, relevance of methodology, accuracy of calculations and observance of requirements of the legislation on estimative activities;
terminal value (terminal value) - when calculating by methods of income approach - asset cost in following forecast period;
replacement cost - cost amount, spent for creation of new object, equal usefulness to assessment object, with use of modern materials and technologies (in the market prices which developed as of date of assessment);
international standards of assessment - The European standards of assessment (European Valuation Standards - EVS), International standards of assessment (International Valuation Standards - IVS), Single standards of professional estimative practice (Uniform Standards of Professional Appraisal Practice - USPAP), standards of Royal institute of certified specialists according to (Royal Institution of Chartered Surveyors RICS);
costs - monetary value of size of the resources required for creation or production of goods, works or services;
equity - the property which is in property of the organization including the authorized, added and reserve capital and retained earnings;
restrictive conditions - the restrictions imposed on assessment by the legislation, the customer or the appraiser;
the expert opinion - the document reflecting results of examination with comments about contents of the valuation report, quality of the carried-out estimative works and reliability of the valuation report;
the most effective use - the most probable, the reasonable and permitted use of object of assessment;
improvements - the changes on the parcel of land created as a result of activities for its transformation for subsequent use and it is strong with it connected. Improvements include buildings and constructions (capital construction projects), engineering systems and networks, long-term plantings and other objects constituting in total with listed, constructive or functional whole.
10. Assessment is performed based on set of the economic principles allowing to determine extent of impact of different factors at assessment project cost size.
Set of the economic principles, estimates influencing project cost, it is possible to classify as follows:
the valuation principles connected with the market circle;
the valuation principles connected with idea of the owner of assessment object;
the valuation principles connected with nature of use of object of assessment;
the basic principles connected with estimative activities of the appraiser.
11. The valuation principles connected with the market circle include:
a) the principle of the demand and supply - the project cost of assessment develops as a result of balance of the demand and supply, and the competition in the market;
b) the principle of the competition - valuation principle which implies creation of equal conditions for ensuring the competition between participants of the market;
c) the principle of change - the project cost of assessment changes over time and is determined for date of assessment. Object of assessment, and also external conditions can also change;
d) the matching principle - is that the maximum project cost of assessment arises when the level of use and nature of objects of assessment conform to requirements and expectations of the market;
e) the principle of dependence (external influence) - valuation principle which means that the project cost of assessment depends on impact of set on it internal and external factors.
12. The valuation principles connected with idea of the owner of object of assessment include:
a) the principle of usefulness - the valuation principle characterizing capability of specific object of assessment to be useful, to satisfy needs of the owner for certain place and during certain time;
b) the principle of substitution - the valuation principle which is that the maximum price of object of assessment is determined by minimum amount for which object analog with equivalent usefulness can be acquired or replaced by another;
c) the principle of anticipation - the valuation principle which is that the project cost of assessment, revenue-producing, is determined by current value of the income which can be received in the future from ownership of assessment object.
13. The principles connected with nature of use of object of assessment include:
a) the principle of the most effective use - valuation principle which claims that the most probable and reasonable use of object of assessment is use which does not contradict the legislation it is physically feasible, financially reasonablly and leads to the largest project cost of assessment. The principle the most effective use is fundamental and is integral part of calculations of market value of object of assessment;
b) the principle of contribution - the valuation principle meaning that purchase costs and implementation of any additional elements and improvements are justified if they do not exceed the size of the increase in value received as a result of implementation of additional elements and improvements of object of assessment.
c) the principle of balance - valuation principle which claims that if object of assessment consists of two and more components, such components shall be in functional communication and the maximum project cost can be received in case of respect for their optimum balance;
d) the principle of the increasing and going down return - the valuation principle saying that not necessarily leads increase in costs of production factors (work, the capital, etc.) to value increase of object of assessment, equal this increase;
e) the principle of optimum separation - the valuation principle meaning that elements of objects of assessment and property rights on them should be divided and connected so that to reach the maximum project cost.
14. The appraiser shall observe the following basic principles when implementing estimative activities:
ethics - appraisers shall follow ethical principles of conscientiousness, objectivity, impartiality, confidentiality, competence and professionalism for strengthening and preserving public trust;
competence - appraisers shall have the skills and knowledge necessary for proper task performance on assessment;
compliance - appraisers shall open or report about the standards of assessment used for task performance on assessment and observe these standards;
cost type - appraisers shall choose the cost type suitable for the corresponding task for assessment and observe all applicable requirements. The cost type shall be specified in task for assessment;
date of cost determination (date of assessment) - appraisers shall open or report date of assessment which is basis of their analysis, opinions or conclusions. Appraisers also shall specify date of creation of the valuation report;
assumptions and additional terms - appraisers shall open in the valuation report the essential assumptions and conditions characteristic of task for assessment which can affect result of its accomplishment;
proper use - appraisers shall specify in the valuation report the exact description of intended use of results of assessment according to task for assessment;
the expected user(s) - appraisers shall specify in the valuation report the exact description of the user (users) of results of assessment, according to task for assessment (in the presence of information);
amount of works - appraisers shall determine, execute and if necessary disclose the amount of works which accomplishment will lead to reliable assessment;
identification of object of assessment - appraisers shall determine accurately assessment object in task for assessment;
data - appraisers shall use initial and other information for reliable assessment of object of assessment;
assessment technique - appraisers shall use correctly the corresponding technique(s) of assessment for receipt of reliable assessment of object of assessment;
the message on assessment - appraisers shall open accurately in the report about estimates to the user (users) about analyses, opinions and conclusions of assessment;
storage and accounting - appraisers shall provide storage of the valuation report (paper or electronic type) from the date of its creation, within 3 years, and also to keep their register.
15. The national standard of assessment "Task for assessment" (further - No. sales tax 2) establishes general requirements to task for assessment.
16. The sales tax No. 2 shall be used by preparation and approval of the customer of task for assessment, and also in case of introduction in it of changes and amendments.
17. Preparation of task for assessment is performed by the appraiser together with the customer and applied as integral part to the agreement on assessment.
18. The task for assessment shall contain the following information:
name and characteristic of object of assessment;
the estimated rights to assessment object;
location of object of assessment;
name of the customer and his details;
name of the estimative organization and its details;
assessment purpose;
date of assessment;
type of the determined cost;
the currency applied in case of assessment;
important and/or special assumptions;
restrictive conditions;
the list of the initial information provided by the customer for evaluating;
terms of performance of works by assessment;
format of creation of the valuation report (electronic or on paper);
expected users (in the presence).
Depending on the purpose of assessment and specifics of object of assessment, the task for assessment may contain other additional data, approved by the appraiser together with the customer.
19. The appraiser shall discuss with the customer in case of creation task for assessment the following information:
a) data on the estimative organization. If the estimative organization is related or participation in the customer, the estimated object of assessment or other aspects of task for assessment or possibilities of the estimative organization are limited by preparation of objective assessment, then she shall declare such facts from the moment of receipt of task for assessment.
If the estimative organization needs to ask other persons for the essential help for accomplishment of any part of task for assessment, then nature of this help and degree of trust needs to be told the customer.
b) information about the customer (customers). Information on the customer (customers) is important in case of determination of form and content of the valuation report, and guarantees that information in the report corresponds to their requirements;
c) the information about expected consumers (if are available). Confirmation of availability of any expected consumers of the valuation report, matters for guaranteeing compliance of content and format of the report about estimates to their requirements;
d) assessment object. In task for assessment it is necessary to give accurate definition of the estimated object (objects);
e) assessment purpose. In task for assessment it is necessary to determine accurately assessment purpose to avoid implementation of assessment which is not corresponding to its content or the purposes specified in task for assessment. Assessment purpose also influences by sight / cost types or their determination;
e) type of the determined cost. The type of the determined cost shall answer assessment purpose. If the appraiser uses the cost type which is not specified in ENSO which is determined by the customer the appraiser shall specify this cost type and give it definition;
g) the currency applied in case of assessment. It is necessary to determine currency which will be applied it (is used) when evaluating and to be reflected in the valuation report;
h) date of assessment. It is necessary to specify date of assessment surely. If date of assessment differs from date of creation of the valuation report it is necessary to differentiate these dates accurately;
i) nature and amount of works of the appraiser and any, the restrictions connected with it. All restrictive conditions connected with carrying out surveys, queries and the analysis shall be determined. If information is unavailable, all similar restrictions and any important and/or special assumptions shall be specified;
j) nature and sources of information on which the appraiser relies. It is necessary to determine nature and source of any important information on which assessment, and also amount of verification of information in the course of accomplishment of assessment is based;
k) important and/or special assumptions. All important and/or special assumptions which will be used in the course of evaluating and creation of the valuation report shall be determined;
l) format of creation of the valuation report. It is necessary to specify format of the valuation report, i.e. submission of the valuation report in paper form and/or in the form of the electronic document with use of the digital signature and other details of the electronic document, allowing to identify it;
m) restrictions for use, distribution and publication of the valuation report. It is necessary to limit use of the valuation report and the group of people, available to it, at the same time it is reasonable to specify the corresponding restrictions in task for assessment;
o) obligatory evaluating according to ENSO and departures. The appraiser shall carry out assessment according to requirements of ENSO, and also in the presence of departures from ENSO they shall be proved.
20. Tasks for assessment it is signed by authorized persons of the estimative organization and the customer prior to process of assessment.
If it is impossible to determine exact amount of works by assessment, the estimative organization with the customer specify approximate amount of the carried-out works in task for assessment, in subsequent in case of exact scoping of works draw up modification and amendments in task for assessment.
21. Contractual relations in estimative activities between the estimative organization and the state customer it is regulated by the legislation on public procurements and the contractual legal base of activities of business entities, and shall conform to requirements of sales tax No. 2.
22. In case of impossibility of the solution of single questions of Item 19 ENSO prior to accomplishment of process of assessment specified in task for assessment, emergence of information owing to what there is need of modification and amendments for task for assessment, or for other situations which require carrying out studying, modification and amendments in task for assessment during the entire period of evaluating is allowed.
At the same time changes and amendments in task for assessment shall be signed by authorized persons of the estimative organization and the customer.
23. (Change of amounts of works, changes, concerning the questions specified in Item 21 ENSO, etc.) the appraiser shall report to the customer before completion of works on task performance on assessment and creation of the valuation report about any changes which arose after the beginning of performance of works by assessment.
24. The national standard of assessment "The studying and analyses which are carried out in the course of assessment" (further - No. sales tax 3) establishes procedure for collection, studying, the analysis and use of information during the course of performance of task for assessment.
25. The sales tax No. 3 shall be applied in case of accomplishment of tasks on assessment of objects of assessment, and also in case of examination of reliability of valuation reports.
26. The studying which are carried out for ensuring justification and reliability of assessment of object of assessment and also process of collection of necessary information and data, shall conform to requirements of this ENSO, the purposes of task for assessment and type (types) of cost.
27. For preparation of the reasonable valuation report the appraiser shall collect necessary amount of information by identification (survey) of object of assessment, creation of requests, and also carrying out the analysis and calculations.
28. Process of information collection and its analysis is performed by the appraiser along with identification of object of assessment that is reflected it in the valuation report.
29. The amount of calculations and their disaggregation will depend on the collected information and documents necessary for evaluating.
The procedure for information collection on object of assessment includes:
determination of structure of necessary data;
collection of necessary information;
systematization, processing and data analysis;
studying of quantity and quality characteristics of object of assessment;
the description of information in the valuation report.
30. During information collection by the appraiser market research to which assessment object following the results of which data on sale and offers of identical objects and analogs according to assessment object signs are selected belongs is carried out. Key parameters and characteristics of object of assessment are compared to similar parameters and characteristics of objects analogs.
In case of information collection information on identical objects analogs is considered priority.
31. In case of information analysis and the provided documents results of survey of object of assessment are considered. With discrepancies, contradictions or doubts in accuracy of the information and the submitted documents the appraiser has the right to specify basic data and to apply them in further calculations or to use other reasonable information for assessment.
32. If the task for assessment assumes use of information obtained from other person, then it is necessary to analyze whether such information is reliable and whether it will be possible to rely on this information that it did not make negative impact on reliability of the valuation report.
33. Information provided to the appraiser shall be confirmed (is signed).
In case reliability or reliability of the provided information cannot be confirmed, it is necessary to consider question of whether such information will be used.
34. In case of the solution of question of correctness and reliability of the provided information, the appraiser shall consider:
evaluating purpose;
the importance of information for conclusion of total cost;
source credibility;
communication or lack of communication of source of information with the affiliate of the customer or customer of assessment, and also assessment object.
35. Collected information is considered reliable if its use does not lead to essential change in value of object of assessment.
If the lack of information will affect final result of project cost of assessment, it shall be reflected in the valuation report.
36. Having collected (received from the customer or persons authorized by him) primary documentation, the appraiser with the customer or the representative of the asset holder of object of assessment, performs the inspection, studying of actual state of object of assessment, its description, measurement, photography and other actions necessary for identification of object of assessment.
37. Inspection of objects of assessment is performed for the purpose of their identification, determination of their condition, compliance to the submitted initial (primary) documents.
38. The procedure of identification (survey) of object of assessment includes the following main stages:
visual survey of object of assessment;
photographing of object of assessment;
identification of object of assessment;
creation of the inspection report.
39. In case of identification of object of assessment compliance of quality and quantity characteristics of object of assessment, proceeding from its actual state to the data specified in documents, provided by the customer and/or person authorized by it is determined.
Compliance of property rights on assessment object to the documents confirming the right to property is studied. If necessary at the request of the appraiser are drawn up by person which provided documents refining (explanation) to the relevant documents in the form of additional references. All work on identification of object of assessment done by the appraiser is reflected in the valuation report.
40. The appraiser should identify and describe the following characteristics of object of assessment:
name, functional purpose and current use;
location, physical and legal description of object of assessment;
total area of object of assessment;
restrictions in relation to object assessment.
41. The customer of assessment or authorized by him persons shall provide to the appraiser access to assessment object in accordance with the established procedure.
42. In case of not carrying out identification (survey) the appraiser shall specify in the valuation report of the reason on which object of assessment was not identified (is inspected), and also the assumptions connected with its not carrying out.
43. If results of the studying included in task for assessment and which are carried out in case of identification of object of assessment do not provide reliable assessment or if provided information is incorrect or it is impossible to obtain information, the appraiser should refuse continuation of assessment.
44. The appraiser shall keep all materials received in the course of assessment by means of which the total cost, during the entire period storage of the copy of the valuation report (paper or electronic type) determined by the legislation was received. These materials shall include basic data, calculations, studying and analyses, and also any documents used in the valuation report.
45. When evaluating, the appraiser shall use all available information and data, proceeding from the requirement of the legislation with observance of confidentiality terms.
46. If in the course of assessment it is necessary to observe the requirements of the legislation different from some requirements of YaMBS, the appraiser shall observe these requirements of the legislation according to the principles of YaMBS.
In case of availability in the valuation report of reasons for departure from ENSO as compulsory measure, this assessment is considered carried out according to ENSO.
47. The estimative organizations can observe the procedures of carrying out studying, the analysis and information collection established in internal documents when evaluating if they do not contradict ENSO and the legislation on estimative activities.
48. The national standard of assessment "Valuation report and procedure for its creation" (further - No. sales tax 4) establishes procedure for creation and report layout about assessment.
49. The sales tax No. 4 shall be applied in case of creation of valuation reports of objects of assessment.
Results of works on rendering additional professional services by the estimative organizations according to the Law of the Republic of Uzbekistan "About estimative activities" are not the valuation report.
50. Results of assessment shall be made according to the legislation on estimative activities and are drawn up in report type about assessment reflecting the project cost of assessment, confirmed based on collected with the estimative organization of information and calculations.
Assessment project cost specified in the valuation report has advisory nature.
51. The valuation report shall contain information necessary for the correct understanding of assessment or conducting examination of the valuation report. The report shall not allow ambiguous interpretation or mislead.
In case of value assessment of machines and the equipment, inventory stocks, and also other assets and liabilities, the total cost of object of assessment specified in the valuation report can be used if from the date of creation of the valuation report there passed no more than six months.
In case of value assessment of intangible assets and intellectual property items, business and the rights of participation in business and the real estate the total cost of object of assessment specified in the valuation report can be used if from the date of creation of the valuation report there passed no more than twelve months.
In case of carrying out retrospective assessment, the conclusion about the project cost of assessment is valid only for date of this assessment.
52. In the valuation report it is necessary to describe precisely amount and content of task for assessment, its purpose and appointment (including any restrictions for use), and also information including any important, uncertain or restrictive conditions directly influencing assessment.
In the valuation report it is also necessary to specify its compliance ENSO and to open any departures from this ENSO.
53. The format of creation of the valuation report (electronic or on paper) shall be approved between the customer and the appraiser according to task for assessment.
54. The valuation report shall contain data on requirements in task for assessment, the carried-out works and the received results.
55. The valuation report shall not contain information which is not used in the course of evaluating if use of this information is not obligatory according to requirements of ENSO.
56. In the valuation report it shall be specified:
date of creation of the valuation report and its sequence (registration) number;
basis for evaluating object of assessment;
assessment object assessment purpose;
type of the determined assessment project cost;
information about the customer (customers),
name of the estimative organization, its location (postal address), bank details, information on membership in professional public association of the estimative organizations and availability of the corresponding policy of assurance;
information on the qualification certificate of the appraiser (appraisers) who was carrying out assessment object assessment;
the description of object of assessment allowing to identify unambiguously it for date of cost determination of object of assessment, and also the information about the owner of object of assessment;
standards of assessment, basis of their application, the list of the data used in case of assessment object assessment with indication of sources from which these data are obtained;
the sequence of evaluating object of assessment, and also restriction on use of the received results;
date of assessment;
the list of the documents used by the estimative organization and establishing quantity and quality characteristics of object of assessment;
format of creation of the valuation report (electronic or on paper).
If assessment of object of assessment was carried out by several appraisers, in the valuation report the work performed by them in the course of preparation of the valuation report is specified.
If when evaluating object of assessment the cost, excellent from market is determined, in the valuation report criteria of its determination and the reason of departure from possibility of determination of market value of object of assessment shall be specified.
The valuation report may contain also other data necessary for reasons for project cost of assessment.
57. In the course of assessment the used information shall be opened, except for confidential information.
The appraiser can open confidential information only in coordination with customers and (or) with persons which provided this information or according to the judgment.
The confidentiality level of the used information is determined by the customer and (or) persons who provided this information or the faces which are directly tied with this information.
58. In case of preparation of the valuation report in paper form, each its page shall be numbered and signed the appraiser (appraisers), and the report shall be strung together, signed and approved by the head of the estimative organization.
In case of preparation of the valuation report in format of the electronic document, the report shall be confirmed with the digital signature of the appraiser (appraisers) who was carrying out assessment and the head of the estimative organization and also to have other details of the electronic document allowing to identify it.
59. Shall be attached to the valuation report:
the copy of the membership certificate of the estimative organization in professional public association of the estimative organizations;
copies of qualification certificates of appraisers;
the copy of the insurance policy confirming entry into force of obligations of the insurer according to the insurance contract of the civil responsibility of the estimative organization;
copies of the documents used in the course of preparation of the report about estimates and cost determination of object of assessment.
60. The report structure about assessment contains the following main Sections:
title page;
table of contents of Sections;
the cover letter to the valuation report;
task for assessment and basic facts and conclusions on assessment object;
the description of general economic country situation and the region of assessment connected with object;
the description of industry and the market to which assessment object belongs;
description of object of assessment;
data analysis of the financial reporting of object of assessment (in the presence);
description of the choice and application of approaches and evaluation methods;
final project costs of assessment and its determination;
appendices.
61. On the title page of the valuation report are specified:
registration number of the valuation report;
name and address of object of assessment;
type of the determined assessment project cost;
date of assessment;
date of creation of the valuation report;
names of the customer and estimative organization (appraiser);
membership in professional public association of the estimative organizations.
The final report structure about assessment, can be changed by the appraiser depending on nature of object of assessment, the purposes of assessment and the expected user of the valuation report.
62. The national standard of assessment "Cost types" (further - No. sales tax 5) establishes cost types, their determinations and interpretation, and shall be applied in case of determination of cost type which shall be determined for assessment object.
63. Depending on the purposes of assessment of object of assessment it is established market or other than market value.
64. The cost type determines the basic principles which formed the basis for the cost specified in the valuation report.
The cost type can make impact at choice of basic data and assumptions or to determine them, and also at final size of cost.
65. The following general elements are inherent for the cost types applied when evaluating:
the expected transaction with assessment object (further - the expected transaction);
date of the expected transaction;
parties of the expected transaction.
66. Depending on cost type, the expected transaction on form is divided on:
hypothetical transaction;
actual transaction;
transaction on acquisition (investment);
the transaction on sales (exit from investment object);
the transaction performed in certain or hypothetical market according to in advance set characteristics.
67. Date of the expected transaction will influence what information and data the appraiser will take into account when evaluating.
The majority of cost types do not allow to take into account information or situation in the market which are unavailable to participants or which cannot be available to them without carrying out additional researches for date of assessment or for date of creation of the report.
68. The cost type reflects main assumptions, including, features of the hypothetical transaction, the relation and motivation between the parties of the transaction, and also duration of the period of exposure of object of assessment in the market.
69. The appraiser shall choose the cost type answering conditions and the purpose of task for assessment and to observe all requirements connected with the chosen cost type.
The choice of approach and evaluation methods, basic data and restrictions will depend on cost type.
70. The appraiser shall not use cost type which is inapplicable, for the purpose of assessment specified in task for assessment.
71. Nature and source of basic data for assessment shall correspond to cost type.
72. Within ENSO cost types are divided into the following groups:
a) connected with market value:
market value;
market rent;
pledge project cost;
b) connected with other than market value:
fair value;
investment cost,
synergy cost;
salvage value;
utilization cost;
residual book value;
residual cost of substitution;
residual cost of reproduction;
special cost;
insurance value;
tax cost.
73. Any result of assessment executed on the basis of the cost types other than market value requires different assumptions which the appraiser shall identify and include in the valuation report accurately.
In case of lack of possibility of determination of the corresponding cost type, excellent from market, the appraiser shall make changes to task for assessment in coordination with the customer.
74. The cost type represents the settlement project cost of assessment without the cost accounting of the seller on implementation of sale or costs of the buyer for purchase, and also any taxes which are subject to payment by the parties as a result of transaction.
75. The appraiser bears responsibility for the correct interpretation and application of cost types.
§1. Market value
76. Market value of object of assessment is understood as the most probable price at which this object of assessment can be aloof in the public market in the conditions of the competition when the parties of the transaction are effective in the interests reasonably and without coercion, having all necessary information, and any force majeure do not affect the size of transaction price, including obligation for one of the parties to enter this transaction.
If in the regulation containing the requirement of obligatory evaluating any object of assessment or in the agreement on assessment of object of assessment the specific cost type is not determined, market value of this object is subject to establishment. The specified rule is subject to application and in case of use in the regulation not provided by the Law of the Republic of Uzbekistan "About estimative activities" or ENSO, terms determining assessment object cost type.
77. Market value shall be treated in the following conceptual framework:
a) "the most probable price..." treats the price expressed in money which can be paid for asset in case of the commercial market transaction.
Market value is the most probable price which, for reasonable reasons, can be received for date of assessment in the market in case of observance of the conditions containing in determination of market value. This price - the best of achievable, for reasonable reasons, for the seller and the most profitable of achievable, for reasonable reasons, for the buyer. In case of determination of this price, in particular, the prices overstated or underestimated owing to special conditions or circumstances of the transaction, such as atypical form of financing, sale with receipt of object back in the lease, special compensations or concessions provided any of the parties involved in this transaction are not considered and any element of cost available only to specifically certain owner or the buyer is not considered;
b) "… in the public market in the conditions of the competition..." the project cost of assessment is the expected settlement size in the conditions of the competition but which is not predetermined in advance or actually stipulated by selling price (non-competitive conditions). It represents the price in the transaction for date of assessment when which implementing all other conditions containing in determination of market value are satisfied;
c) "... transaction..." means that the parties are effective independently and between them there are no special relations which can make transaction price level uncharacteristic for the market;
d) "... are effective in the interests reasonably …" means the assumption that both the interested buyer, and the interested seller sufficiently are informed on nature and properties of the sold asset, its actual and potential use, and also on market situation for date of assessment. Having this information, they are effective in the interests, aiming to reach the best price, from the point of view of their line item in the transaction.
e) "... and without coercion..." means that each of the parties has motives for transaction, but any of the parties is not forced or is not forced to make the transaction.
78. Market value assumes price fixation in the public competitive market and consisting of buyers and sellers.
79. Market value of asset reflects its most effective use. Such its use shall be physically possible, legally admissible and financially implementable.
80. The estimates based on market value shall rely on information, concerning the compared objects.
Process of assessment demands from the appraiser of carrying out necessary and due diligence, carrying out the correct analysis and forming of assumptions, factual and proofs. In this process appraisers shall consider all facts, tendencies, comparative transactions and other information observed in the market and connected with task for assessment.
If market data are limited or in general are absent, the appraiser shall describe the current situation in the valuation report and specify that calculations were limited (if there were restrictions) definitely because of insufficiency of data.
In all estimates personal judgment of the appraiser is required.
81. If the appraiser has possibility of carrying out the analysis of the available data and circumstances connected with the market of the estimated assessment object, each approach or method applied in the course of assessment shall provide establishment of market value of object of assessment.
§2. Market rent
82. The market rent is understood as the most probable price at which object of assessment can be leased in the public market in the conditions of the competition when the parties of lease (the interested lessor and the lessee) are effective in the interests reasonably and without coercion, having all necessary information (marketing), and any force majeure do not affect the size of the rent, including obligation for one of the parties to enter this rent transaction.
83. The contractual rent is understood as the rent paid according to conditions of the signed lease agreement. It can be fixed on lease term or variable. Changes of the rent are reflected in the lease agreement and shall be determined and clear for establishment of total amount of the benefits received by the lessor and obligations of the lessee.
84. The market rent can be used as cost type in case of assessment of the lease agreement or the right of lease. In similar cases it is necessary to take the contractual rent and the market rent into account (if it differs from contractual).
85. In some cases the market rent can be accepted/is calculated based on conditions of the signed lease agreement.
§3. Pledge project cost
86. Project cost of pledge is understood as market value of the object of assessment which is subject of pledge or planned to transfer as providing in the form of pledge.
Any property, including things and property rights (requirements), except for the things withdrawn from circulation, requirements inseparably linked with the identity of the creditor, in particular, requirements about indemnification caused to life or health about the alimony and other requirements which concession to other person is prohibited by the law can be subject of pledge.
87. In task for assessment, the appraiser shall specify that assessment of object of assessment is made for the pledge purposes.
§1. Fair value
88. Fair value is understood as estimated price in case of sale of object of assessment (realization of property or debt write-off) between concerned parties which reflects the corresponding interests of data of the parties in the free transaction.
89. Determination of fair value will demand assessment of such price which will be fair in the transaction between specifically certain parties taking into account all benefits or negative properties which each of the parties will find according to the transaction.
In this case, in case of cost determination, it is necessary to ignore all benefits or negative properties which in general will not be characteristic or available to participants of the market.
§2. Investment cost
90. It is necessary to understand assessment project cost considering the investment or operational (economic) purposes for his specific or potential investor as investment cost.
91. Investment cost is subject and specific cost type when the asset cost though is equal to the size which he could receive in case of sale to other party, in case of this cost type benefits which can be received from ownership of the economic actor and without application of any exchange of the corresponding asset are reflected.
92. In investment cost the financial condition of the economic actor and the financial purposes of accomplishment of assessment are reflected. This cost, generally use for investment soundness determination.
§3. Synergy cost
93. Synergy cost is the cost which is formed as a result of combination of two or more assets, or shares when the cumulative size of cost appears more, than the amount of their costs taken separately (positive synergy), or on the contrary (negative synergy).
94. If the synergy effect is reached only by one specific buyer, then synergy cost will differ from market as specific characteristics of asset which have value only for the specific buyer will be reflected in synergy cost.
95. Need of determination of synergy cost arises in case of assessment of property and investment complexes of real estate objects in which objects functionally supplement each other (positive synergy) or prevent realization of any functions at the required level (negative synergy).
§4. Salvage value
96. Salvage value means the amount to obtaining in case of sale of asset or group of assets in parts. In salvage value it is necessary to consider costs for pre-sale preparation of assets, and also costs on their realization.
97. Salvage value can be determined, using the following precedent conditions when evaluating:
the arranged transaction with the regular period of marketing;
the forced transaction with the reduced marketing period.
The appraiser shall specify in the valuation report what of precedent conditions he used in case of determination of salvage value.
§5. Utilization cost
98. Utilization cost means value equal to market value of the materials constituting assessment object.
This cost can be expressed as aggregate or net value (less costs to sell).
Special case of utilization cost is the skrapovy cost (Scrap value) when the cost of objects for most of which in an efficient manner uses realization on scrap metal is recognized.
§6. Residual book value
99. Residual book value means the original (recovery) cost of fixed assets less the amount of cumulative depreciation.
§7. Residual cost of substitution
100. Residual cost of substitution means cost amount, required on creation of new object, equal usefulness to assessment object, with use of modern materials and technologies, in the market prices which developed as of date of assessment and considering depreciation of object of assessment.
§8. Residual cost of reproduction
101. The concept of residual cost of reproduction means cost amount, the new object identical to assessment object required on creation, with use of identical materials and technologies, in the market prices which developed as of date of assessment and considering depreciation of object of assessment.
§9. Special cost
102. Special cost is the amount, above market value which reflects certain characteristics of the assets having value only for the special buyer (having special interest).
§10. Insurance value
103. Insurance value is the property value provided by the insurance contract or the policy. At the same time, actual cost of property for the insurance purposes is determined for signature date of the insurance contract or policy.
§11. Tax cost
104. Tax cost represents the cost calculated according to the existing tax legislation.
105. In task for assessment and in the valuation report it shall be specified for what type of tax this cost is determined.
106. In assessment premises (intended use) conditions (circumstance) of use of assets or liabilities are expressed. This some kind of assumption of rather most probable set of circumstances of the transaction which can be applicable to assessment object. For different types of cost special premises of assessment can be required or several premises of assessment can be considered. General premises of assessment are:
the most effective use;
the flowing/existing use;
the arranged liquidation (sale);
forced sale.
107. Understand such form of use of asset in case of which, from the point of view of the participant, the highest cost is provided to this asset as the most effective use.
The most effective use shall be physically possible (if it is pertinent), financially reasonable, legally admissible, and it shall be led to the greatest cost.
If similar use differs from simple current use, costs on transfer of asset in more effective form of use will exert impact on its cost.
From the point of view of premises "the most effective use", is understood as asset real estate object.
108. Determination of type of the most effective use implies the following:
determine whether this or that use of asset is physically possible, those uses which would be considered by participants reasonable will be considered at the same time;
to consider the requirement of "legal admissibility", it is necessary to take into account any legal limits on use of asset. For example, town-planning requirements or restrictions on zoning, and also probability that these restrictions will change in the future;
the requirement that use shall be "financially reasonable" considers whether alternative use of asset which is physically possible and legally admissible will bring sufficient return to the typical participant over return in its current use, after the cost accounting on transfer of asset in such alternative use.
109. The flowing/existing use means form of use of asset or liability now. The current use can match with the most effective use of asset.
110. In case of the arranged liquidation (sale), reasonable times on search of the buyer (buyers) are implied, the asset cost which are supposed to be sold in case of liquidation in case of which the seller is forced to sell asset "in the existing condition" and "in the location is specified".
The reasonable time allotted for search of the buyer (buyers) can be different depending on asset type and market conditions.
111. The term "forced sale" is used in circumstances when the seller is forced to make sale and, as a result of it, it has no time for the sufficient term of exposure (time which object shall be in the market to be sold), and buyers cannot carry out due diligence.
The price which can be received in these circumstances will depend on nature of pressure upon the seller and on why proper exposure / marketing of asset cannot be performed. Such price can reflect effects for the seller because of impossibility to make sale during sufficient term.
If nature and the reasons of pressure upon the seller are unknown, then the price which can be received in case of forced sale cannot be determined correctly.
The price to which the seller will agree in case of forced sale will reflect its specific circumstances, but not those circumstances which are characteristic of the hypothetical interested seller, from determination of market value.
Forced sale is description of situation in case of which there is exchange, but not accurately designated cost type.
112. If it is required to determine the price which can be received in case of forced sale, it is necessary to specify accurately the reasons of the restrictions influencing the seller.
It is necessary to specify effects from impossibility to perform sale in the allotted time, having specified the corresponding assumptions.
If for date of assessment there are no such reasons, they shall be accurately specified as special assumptions.
113. The premises of forced sale, reflect the most probable price which can be received for specific property in case of observance of all conditions provided below:
sale completion in a short space of time;
the asset falls under action of the market conditions operating for date of assessment or during certain period of time during which the transaction shall be complete;
both the buyer, and the seller act circumspectly and is informed;
the seller is forced to make sale;
the buyer has typical motivation to the transaction;
both parties are effective as they consider better for them;
application of regular measures for carrying out marketing is impossible because of the allotted short term of exposure;
payment will be made by money.
114. Sales in the inactive or falling market are not certificates of "forced sales" because the seller could hope for receipt of the best price if the provision improved.
If the seller is not forced to sell in time which does not allow to perform proper marketing of asset, such seller will be considered as the interested seller, according to determination of market value.
115. The confirmed transactions of "forced sales" are not considered in estimates in which cost type is market value.
116. In case of determination of market value of object of assessment data on the objects estimated at the cost other than market value are excluded from basic data, and they are inherent only to the certain buyer or the seller and are not applied to other participants.
117. Can be examples of the specific factors characteristic of certain economic actors which can be not known to participants:
additional value or reduction in cost as a result of creation of portfolio of similar assets;
unique interaction (synergism) of asset with other assets belonging to the economic actor;
the legal rights or restrictions applicable only in relation to the considered economic actor;
the tax benefits or the burdensome taxation applied to the considered economic actor;
possibility of use of asset which is exclusive for the considered economic actor.
If the purpose of assessment is cost determination (for example investment) for the specific owner, specific factors for certain economic actor are reflected in asset assessment.
118. In case of determination of cost type it is necessary to specify assumptions or several assumptions, for refining of condition of asset in the hypothetical transaction or circumstances under which exchange of asset is supposed. Such assumptions can exert considerable impact on cost.
119. The corresponding types of assumptions are subdivided into two categories:
the accepted facts which correspond with those facts or can correspond to those facts which exist for date of assessment (assumption);
the accepted facts different from those facts which actually exist for date of assessment (special assumptions).
120. The assumptions connected with the facts which correspond or can correspond to the facts existing for date of assessment, can be consequence of restriction of amount of researches or the request made by the appraiser.
Examples of such assumptions is the following:
assumption that business is transferred as the full-fledged acting business entity;
assumption that the assets involved in business are transferred without business (separately or group);
assumption that separately estimated asset is transferred together with other complementary assets;
assumption that the equity is transferred by packet or separately.
121. If for date of assessment the accepted facts differ from actually existing, they are called "special assumption".
Special assumptions use to show influence of possible changes on asset cost.
Special assumptions designate as "special" to show to the user of assessment that the report about estimates depends on change of the current circumstances or that it reflects opinion for date of assessment with which participants will not be agree.
Examples of such assumptions is the following:
assumption that real estate keeps on the full authority of property which is not encumbered with lease;
assumption that the offered building is actually completed by construction for date of assessment;
assumption that the specific contract existed for date of assessment though upon it it was not concluded yet;
assumption that the financial instrument is estimated with use of yield curve which differs from that which the participant would use.
122. All assumptions and special assumptions shall be reasonable in the set circumstances, be supported with actual data and to be urgent proceeding from assessment purpose.
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