ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of November 15, 2016 No. 593

About modification and amendments in the order of the Government of the Kyrgyz Republic "About approval of the standards of assessment of property obligatory to application by all subjects of estimative activities in the Kyrgyz Republic" of April 3, 2006 No. 217

For the purpose of enhancement and development of estimative activities in the Kyrgyz Republic, according to the Civil code of the Kyrgyz Republic, the Tax code of the Kyrgyz Republic, the Law of the Kyrgyz Republic "About financial accounting" and articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Bring in the order of the Government of the Kyrgyz Republic "About approval of the standards of assessment of property obligatory to application by all subjects of estimative activities in the Kyrgyz Republic" of April 3, 2006 No. 217 the following changes and amendments:

- in Item 1:

the fourth to declare the paragraph invalid;

to declare the paragraph of the seventh invalid;

add with the paragraph the ninth the following content:

"-standard of assessment of personal estate.";

- the standard of the basic concepts and valuation principles to state in edition according to appendix 1 to this resolution;

- to state the standard of business valuation in edition according to appendix 2 to this resolution;

- to state the standard of real estate appraisal in edition according to appendix 3 to this resolution;

- add with the appendix "Standard of Assessment of Personal Estate" in edition according to appendix 4 to this resolution.

2. This resolution becomes effective after fifteen days from the date of official publication.

Appendix 1

"No. 217 is approved by the Order of the Government of the Kyrgyz Republic of April 3, 2006

Standard of the basic concepts and valuation principles

1. General provisions

1. This standard determines concepts, the principles, terminology in the field of property assessment, methodology and procedure for evaluating.

2. Standards of assessment are obligatory to application by subjects of estimative activities in the Kyrgyz Republic in case of determination of cost type, object of assessment, approaches to assessment and evaluation methods, and also when evaluating property value of all patterns of ownership.

3. Subjects of estimative activities are physical persons and legal entities, state bodies and local government bodies within the powers conferred to them, consumers of services (customers).

4. Provisions of this standard are used in other standards in the value established by this standard.

5. Terms and determinations:

Assets - the resources which are in someone's property or under someone's management from which in the future expect receipt of economic benefits.

Updating of assessment - cost determination of object of assessment concerning which the value assessment was carried out earlier, for new date, taking into account possible changes in physical condition of object, its market position and other changes capable to exert impact on project cost.

Business - the type of business and economic activity permitted by the legislation of any Kyrgyz Republic, revenue-producing or other benefits.

Goodwill - capability of the company to gain income of above-average or below-average, any future economic benefits, business-related, the participation rights in business or the sets of assets arising when using which are inseparable from these objects, thanks to prestige, goodwill and contacts of the organization.

Date of assessment - date (number, month, year) for which assessment of property is carried out and its cost is determined.

Personal estate - the objects which are not connected with the earth, not attached to it as stationary objects which allow possibility of movement without loss of essential properties: machines, the equipment, goods, money, securities, debt obligations, etc., or capable to move: vehicles, animal, etc. Carry property in material form to personal estate and the rights to it which is not the real estate.

Cash flow - receipt (increase) and expenditure (reduction) of money and their equivalents.

Discounting of cash flow - transfer of values of future cash flows in their current value, proceeding from the expected value of rate of discount.

Income approach - approach to assessment according to which the property value is determined as the current value of property equal to present value of the expected future income from its use and/or sale, taking into account structure, the income, terms and risks.

The contract for evaluating property - the mutual agreement between the customer and the appraiser on rendering services in property assessment.

The task for assessment - the written instrument which is constituted in case of need / in coordination with the customer and is appendix to the contract for evaluating, containing necessary requirements and information for cost determination of property and being the certificate of unambiguous understanding the parties of content of results of the forthcoming work.

The customer - physical person or legal entity by request of which assessment work is carried out.

Cost approach - approach to value assessment of property according to which the property value consists of purchase costs and/or reconstruction of all components, taking into account all types of depreciation.

Costs - money value of cost of material, labor, financial, natural, information and other types of the resources used in the course of economic activity for certain period of time.

Identification of object of assessment - comparison of the actual physical and functional characteristics of property and property rights for establishment of compliance of the data containing in documentation on assessment object.

Excessive property - property which is not used in economic activity of the company and which maximum value is reached owing to alienation.

Depreciation (impairment) - loss of property value concerning the cost of its reproduction.

Depreciation unremovable - depreciation of property, costs for which elimination it is more, than the value added at the same time.

Depreciation cumulative - reduction of project cost of assessment as a result of impact of physical, functional and economic iznos.

Physical wear - partial or total loss of property value because of deterioration in the physical condition caused by its destruction, decrease and natural aging in the course of use throughout service life.

Depreciation functional - the depreciation caused by partial or total loss of functional (consumable) characteristics of object of assessment.

Depreciation economic - economic impairment of property as a result of change of social and economic situation.

Property - the concept applied to designation:

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