RESOLUTION OF THE STATE COMMITTEE ON PROPERTY OF THE REPUBLIC OF BELARUS

of September 9, 2008 No. 70

About approval of the Instruction on assessment of the companies as property complexes (business)

Based on the Regulations on value assessment of objects of the civil laws in the Republic of Belarus approved by the Presidential decree of the Republic of Belarus of October 13, 2006 No. 615 "About estimative activities in the Republic of Belarus" the State committee on property of the Republic of Belarus DECIDES:

1. Approve the enclosed Instruction on assessment of the companies as property complexes (business).

2. This resolution becomes effective from the date of its official publication.

 

Approved by the Resolution of the State committee on property of the Republic of Belarus of September 9, 2008 No. 70

Instruction on assessment of the companies as property complexes (business)

Chapter 1. General provisions

1. The instruction on assessment of the companies as property complexes (business) (further - the Instruction) is developed based on the Regulations on value assessment of objects of the civil laws in the Republic of Belarus approved by the Presidential decree of the Republic of Belarus of October 13, 2006 No. 615 "About estimative activities in the Republic of Belarus" (The national register of legal acts of the Republic of Belarus, 2006, No. 168, 1/7999), and according to STB 52.0.01-2007 "Value assessment of objects of the civil laws. General provisions", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (further - STB 52.0.01), STB 52.1.01-2007 "Value assessment of objects of the civil laws. Assessment of the companies as property complexes (business)", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (further - STB 52.1.01), STB 52.2.01-2007 "Value assessment of objects of the civil laws. Assessment of the parcels of land", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (further - STB 52.2.01), STB 52.3.01-2007 "Value assessment of objects of the civil laws. Assessment of capital structures (buildings, constructions) which are not completed by construction of facilities, the isolated rooms as real estate units", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (further - STB 52.3.01), STB 52.4.01-2007 "Value assessment of objects of the civil laws. Assessment of machines, the equipment, stock, materials", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (further - STB 52.4.01), STB 52.5.01-2007 "Value assessment of objects of the civil laws. Assessment of intellectual property items", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (далееСТБ 52.5.01), STB 52.6.01-2007 "Value assessment of objects of the civil laws. Assessment of vehicles", the approved resolution of the State committee on standardization of the Republic of Belarus of March 14, 2007 No. 15 (further - STB 52.6.01), is also applied to rendering services in assessment of the following objects of assessment:

company as object of the rights *;

company as property complex (business) *;

shares in authorized fund of the legal entity;

shares;

block of shares;

parts of the company.

______________________________

* Further in the text instead of terms, unless otherwise specified, the term "company" is used.

2. Calculation of project cost of assessment is made for the purpose of:

2.1. sales to the specific buyer, including sale in the procedure of economic insolvency (bankruptcy); exchanges;

2.2. introduction of shares (shares) in the form of non-cash contribution to authorized capital of the legal entity;

2.3. sales at the biddings (auction, on tender), including sale in the procedure of economic insolvency (bankruptcy);

2.4. transfers to pledge (mortgage);

2.5. transfers to trust management;

2.6. inheritances;

2.7. permissions of receivership proceeding;

2.8. realization of management decisions;

2.9. transfers to lease;

2.10. exit (exception) of the participant of economic society;

2.11. others, not contradicting the legislation.

3. For the purposes of this Instruction the terms and determinations established in STB 52.0.01, STB 52.1.01, STB 52.2.01, STB 52.3.01, STB 52.4.01, STB 52.5.01, STB 52.6.01, and also the following terms and determinations are applied:

business - any kind of business activity, revenue-producing or other benefits;

control - possibility of decision making, determining policy, development and the future of the company (business);

marginal profit - difference between revenue and variable expenses;

nonfunctioning assets - the assets which are not occupied in productive activity;

business valuation - process of cost determination of business, the company in general, its parts or share in it;

portfolio - set of packets of securities at the investor;

control premium - the additional value of controlling stock (share in authorized fund of the legal entity) reflecting possibility of control unlike not controlling stake;

award for liquidity - the percent (share) added to the cost of the block of shares (share in authorized fund of the legal entity or the company in general), reflecting its high liquidity;

market portfolio - portfolio in which the share of each security is pro rata to its share in total capitalization of the market;

discount for insufficient control - the percent (share) subtracted from pro rata share from the cost of the absolute block of shares or similar share in authorized fund of the legal entity, reflecting lack of some or all opportunities of control;

discount for insufficient liquidity - the percent (share) subtracted from the cost of the block of shares (share in authorized fund of the legal entity or the company in general), reflecting its insufficient liquidity;

capital structure - ratio of own and loan capital;

typical cut of financial condition of the company - reflection in the financial reporting of the income and expenses characteristic of business activity of the company;

frequency of transactions with blocks of shares - the number of transactions with blocks of shares during the certain period of time.

Chapter 2. Procedure for evaluating

4. The procedure for evaluating can include the following stages:

4.1. determination of task and conclusion of the contract for carrying out independent assessment;

4.2. collection and information analysis;

4.3. inspection of object of assessment;

4.4. determination of premises and restrictions;

4.5. description of object of assessment;

4.6. analysis of economic development of the country and region;

4.7. market research and marketing strategy;

4.8. analysis of financial and economic activities of the company;

4.9. choice of evaluation methods and methods of calculation of cost;

4.10. calculation of cost by the chosen methods;

4.11. reasons for total cost of object of assessment;

4.12. creation and report layout about assessment;

4.13. creation of the conclusion about assessment.

The procedure for evaluating is performed by method of balance sheet accumulating of assets according to subitems 4. 1, 4.2, 4.5, 4.10, 4.12, 4.13 these Items.

In case of assessment by market method subitems 4.6-4.7 of this Item can be excluded by the appraiser depending on features of object of assessment.

Obligatory assessment shall be carried out before making with object estimates of the corresponding transaction or other significant action.

5. Before the conclusion of the contract for carrying out independent assessment (further - the agreement) the appraiser formulates task for assessment which is established by the agreement and is reflected in the valuation report.

In task for assessment assessment purpose, type of the determined cost, date of assessment, the object (objects) of assessment and other data at the discretion of the customer of assessment and the appraiser removing any ambiguity connected with evaluating are specified.

The basis for carrying out independent assessment of object of assessment is the agreement signed between the contractor of assessment and the customer of assessment or the court decree.

The agreement is signed in simple written form according to the legislation.

Date of assessment is established for date of creation of the balance sheet and profit and loss statement of object of assessment, except cases when object of assessment are the blocks of shares which are quoted in the stock market in the presence of information on transactions of purchase and sale of shares, blocks of shares (for private companies), parts and the companies in general.

6. Collection and information analysis is made by the appraiser according to requirements of STB 52.0.01, STB 52.2.01, STB 52.3.01, STB 52.4.01, STB 52.5.01, STB 52.6.01. Information according to parts second or heel of this Item gathers in addition and analyzed.

For evaluating upon the demand of the contractor of assessment or the appraiser the customer provides the following information:

data on history of development of the company;

copies of constituent documents;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info