6)
Valuation Standard Six
discusses the condition of engaging a
valuer. Amongst the requirements are the purpose of the valuation
and intended use of the valuation, the date of the valuation, the
interest, basis of valuation, assumptions to be made, the fees
payable and the limits or exclusion of liability to other parties.
7)
Valuation Standard Seven
discusses the various purposes of
valuation and the basis of valuation for each purpose. The common
purposes are for lending, fire insurance, financial reporting, sale
and purchase, submission to the Security Commission purposes and
for compulsory acquisition.
8)
Valuation Standard Eight
deliberates the standards required for a
proper inspection and referencing of property and neighbourhood.
It also encompasses the management of data for a valuation can be
done.
9)
Valuation Standard Nine
lays down the standards required in a
valuation report. Valuation report must contain adequate
information to allow those who need and rely upon the report to
fully understand the data, rationale, analyses and conclusions. It
must also state any assumptions and limiting conditions upon which
the valuation is based.
10)
Valuation Standard Ten
sets out the standards for preparing
revaluation reports of an interest in property which are essentially
carried out in situations where a previous valuation has been done
by the same firm within a period of 5 years.
11)
Valuation Standard Eleven
explains the standards pertaining to
certain limited cases where a detailed report may not be essential in
communicating an opinion of value to the client. Such instances
include situations where a previous valuation has been done by the
Firm and a financial institution which has loaned funds on the
collateral security of the property now requires an update of the
value for the sole purpose of assessing the adequacy or otherwise of
the collateral security.
12)
Valuation Standard Twelve
deliberates on the various methods of
valuation that are used by valuers amongst which are the
Comparative Method, Investment Method, Residual Method, Cost
Method and the Profits Method
13)
Valuation Standard Thirteen
considers the use of assumption in
valuations. All such assumptions must be clearly spelt out in bold
and capital letters in the Terms of Reference, Opinion of Value, and
Other Appropriate Sections of the report. In almost all cases a "as
is" valuation must also be made. The report should note the
inappropriateness of the valuation being used for financing
facilities unless appropriate professional advice has been sought.
14)
Valuation Standard Fourteen
spells out the standards for the
valuation of plant and machinery. In most instances the basis of
valuation is market value. Items to be valued must be properly
inventoried, inspected and adequately described.
