namib I A UniVERSITY
|
|
- Sheena Campbell
- 5 years ago
- Views:
Transcription
1 namib I A UniVERSITY OF SCIEnCE AnD TECHnOLOGY Faculty of Natural Resources and Spatial Sciences Department of Land and Property Sciences QUALIFICATION{S): Bachelor of Property Studies Honours Diploma in Property Studies QUALIFICATION{S) CODE: 27BPRS 27DPRS COURSE NAME: COURSE CODE : EXAMS SESSION/DATE: June 2016 NQF LEVEL: 6 DURATION : 3 Hours MARKS: 100 FIRST OPPORTUNITY EXAMINATION QUESTION PAPER EXAMINER($) Mr. Amin lssa MODERATOR: Mr. S.A.K Hayford THIS QUESTION PAPER CONSISTS OF 7 PAGES (Including this front page) INSTRUCTIONS 1. Read the entire question paper before answering the Questions 2. Please write clearly and legibly! 3. The question paper contains a total of 4 questions 4. You must answer ALL QUESTIONS. 5. Make sure your Student Number is on the EXAMINATION BOOK(s) PERMISSIBLE MATERIALS 1. Use of non-programmable scientific calculator is permitted.
2 VAL6105 Question 1 For each of the following statements indicate whether it is 'TRUE' or 'FALSE'. Each correct answer carries 1 mark. {25) a) Verification of a sold property is necessary when using the comparative method of valuation. b) A buyer informs you that he bought the house from his brother. Your verification has confirmed that this sale is an arm's length market transaction. c) If a property having a hidden value such as oil rights is sold at a price higher than the market value of surrounding properties, then its sale price may be accepted as evidence of fair market value of nearby properties. d) A property sold at an auction to pay off unpaid debts is known as a forced sale. e) The sale price of a property that appears to be too high but has been verified to have apparent unusual conditions can be accepted as evidence of fair market value. f) The comparative method of valuation is a method used to determine the capital value of right to future value derived from ownership of a property under a given market. g) The cost approach to value involves three basic elements namely the value of the land, the current new costs for the structures and an estimated amount of depreciation. h) Reproduction cost is the amount required to construct, as of the effective appraisal date, a building with utility equivalent to the building being valued using contemporary materials, standards, design and layout. i) The reproduction cost new may be used by a valuer to value a property that was built seven {7) years ago and occupied as a private residence in Cimbebasia. j) Functional obsolescence is caused by presence of currently undesirable layout, design or other features, or absence of currently desirable features. k) Changes in land use or natural conditions may result in loss of value to the property itself and is always considered incurable. First Opportunity Examination Page 2 of7 June 2016
3 I) Two years ago, office space was rented for N$155/sq.m. per month in the Windhoek city centre. The rent has changed over these two years. This type of rent is known as Contract Rent. m) A Full Repairing and Insurance (FRI) lease is a type of a lease whereby the lessor is obliged to meet the cost of repairs and insurance. n) Direct capitalization of income considers a series of cash flows over time together with any reversion value or resale proceeds. o) Annuity N$1 will purchase is the annual income that will be purchased for a non-returnable lump sum payment of N$1, given the number of years and the rate of interest to be applied. p) An All-Risks Yield is the remunerative rate of interest used in the conventional valuation of freehold and leasehold interests, reflecting all the prospects and risks attached to a particular investment. q) The Residual Method of valuation is mostly used to value developed land or land having new or otherwise suitable buildings where the site is ripe for redevelopment. r) The Residual Method can also be used to calculate the cost ceiling for construction where land has been acquired (and is therefore a known cost) to ensure, where possible, that a reasonable profit margin is maintained. s) In calculating Gross Development Value, it will be necessary to calculate the lettable floor area and the unit letting value to find a total rental value to which is applied a yield derived both from analysis of the sale prices of other similar developments and experience of yields demanded by the market in general. t) The Profits Method of valuation is used to find the rental value and/ or capital value of a profit generating property, and is used where it is possible to use the comparative method. u) In the Profits Method a factual monopoly occurs where some legal constraint, such as the need for a license to operate certain businesses, exists to prevent competition to the property user from the users of other properties. First Opportunity Examination Page 3 of7 June 2016
4 VAL6105 v) An important part of the value of any type of business to which the profits method might be applied is the personality of the owner or operator. The value of the business is obtained by applying a multiplier to the goodwill. w) Mass valuation is the process of valuing a large number of properties at the same time using standardised procedures. It is the only way to complete a valuation roll. x) The four essential features of a Computer Aided Mass Appraisal (CAMA) are system values, leases, land uses and maps. y) In a Computer Aided Mass Appraisal, valuation involves automated applications of the sales comparison, cost, and income approaches to value. A good system should support all these three approaches. Question 2 a) Explain in brief the advantages of the Comparative Method of valuation. (2.5) b) Mr. Natangwe bought a house for N$ You verified the sale, but you believe the house is worth no more than N$ Mr. Natangwe tells you he settled on this one in a hurry because his wife was due to have twins when they moved into town. Give three reasons why you cannot accept this sale price as evidence of fair market value. (3) c) Outline the four (4) conditions that a comparable property must comply with. (2) d) A valuer is seeking a comparative transaction to help him value a 3 hectare site. He finds that a five hectare site nearby was recently sold for N$ He estimates that that remedying the abnormal conditions (cleaning of chemicals from the soil) will cost the owner N$ So, he implies a total market value of N$ for the 5 hectare site. The subject site (i.e. the 3 hectare site) is in a better location where prices for equivalent property are higher so he adds 20% to the comparable value. Use the information provided to calculate the value of the subject property. (5} e) Use the dollar adjusted sales grid below to find the following: i} Total net adjustments for each comparable sale. ii} Adjusted sale prices for each comparable sale. First Opportunity Examination Page 4 of7 June 2016
5 iii) The most comparable property and reasons for your choice. iv) Value of the subject property which is in the same locality as the com parables. All figures in Namibian Dollars (N$) (5.5) Comparable sales Sale 1 Sale 2 Sale3 Sale4 Price Age of sale -months Time adjustment per month Erf size/value Quality of construction House size Condition Age Garaging Other improvements/layout SaleS f) The area of a house has the following dimensions; 7m x 6m =42m 2 3m x 4.5m = 13.5m 2 5m x 8m = 40m 2 The cost of land improvements is 6% of the cost of the building. The house was built in The lifespan of a house in Namibia is estimated at 70 years. The plot/erf on which the house was built measures 25m x 25m and comparable land sales shows that the land price is N$150 per m 2 The construction rate per square metre is N$ Calculate the Value of the property. (7) Question 3 a) Use the Quantum Deduction Rule to calculate the market value of a piece of land measuring m 2 which is to be sold to a property developer by the City of Windhoek. A comparable erf in the same neighbouhood measuring 5 000m 2 was recently sold for N$ (6) First Opportunity Examination Page 5 of7 June 2016
6 b) Compute the amount of depreciation for the items below, and then compute loss due to depreciation from the house if the estimated replacement cost is N$247,000. (6) Item Reproduction Cost Percent Depreciation Bath fixtures N$1800 Carpeting N$4 200 Furnace N$2 800 Roof N$ % 50% 25% 90% c) The operating statement of the PolyHeights (freehold) is as follows: Effective Gross Income Fixed Operating Expenses Variable Operating Expenses Replacement Allowance N$ N$ N$ N$ Using the information provided above, calculate the following: i) Total Operating Expenses (1.5) ii) iii) iv) Operating Expense Ratio Net Operating Income Net Operating Income Ratio (1.5) (1.5) {1.5) v) Value of the property given a yield for similar type of properties being 8%. (2) d) Use the Hardcore (layer) horizontal separation technique of the Term and Reversion method, find the capital value of a freehold property having a contract rent of N$ p.a. Research shows that market rental is at N$ p.a. and the lease still has 2 years to run. (Hint: use a capitalization rate of 5.5% for the contract rent; and 7.5% for market rental). Explain also why the rates differ. (5) First Opportunity Examination Page 6 of 7 June 2016
7 Question 4 a) A developer would like you to value the land he intends to buy for development of three (3) flats, each with a sale value of N$ Each flat has an area of 150m 2 and building costs are estimated at N$3 000 per m 2 Professional fees are 5% of building costs while interest fees on borrowed money is N$ per month. Legal and Agent's fees on eventual flat sales are N$ and the developer's profit is N$ Advise him on the likely purchase price of the undeveloped land. The development is expected to be completed in one year. (6) b) The Estimated gross trading profit of Hotel KichwaKichwa as of December 2015 was N$ while its estimated net profit was N$ Assuming an interest on tenant's capital at N$ at 12%, a sinking fund for renewal of contents at N$ and a return of 9% each for the freehold and the lease, calculate the following: i) Hotel expenses (expenditure) ii) iii) Net operating profit Rent at 50% of Net operating profit iv) Goodwill at 50% v) Market value of the hotel, assuming it is a freehold and is on a 3 year lease. {11) c) What is a Computer Assisted Mass Appraisal system (CAMA) and what are its components? (4) d) Account for any four (4) desirable features which support valuation in a CAMA system. (4) All the best of luck! First Opportunity Examination Page 7 of7 June 2016
Introducing Property Valuation
Introducing Property Valuation Michael Blackledge Routledge Taylor & Francis Group LONDON AND NEW YORK Illustrations Cases Acknowledgements Disclaimers x xii xiv xv 1: Background 1 Economic context 3 1.1
More informationReal Estate Reference Material
Valuation Land valuation Land is the basic essential of property development and unlike building commodities - such as concrete, steel and labour - it is in relatively limited supply. Quality varies between
More informationRequirements for International Standards in Valuation & Surveying
Requirements for International Standards in Valuation & Surveying Jonathan Harris CBE DLitt(Hon), FRICS, FInstCPD, CRE President of RICS 2000-2001 Member of REM Glossary of Terms for International Valuation
More informationIntroducing. Property. Valuation. Second edition. Michael Blackledge. Routledge R Taylor & Francis Croup LONDON AND NEW YORK
Introducing Property Valuation Second edition Michael Blackledge Routledge R Taylor & Francis Croup LONDON AND NEW YORK I Contents List of illustrations List ofcases Acknowledgements Disclaimers x xiii
More information2. The, and Act, also known as FIRREA, requires that states set standards for all appraisers.
CHAPTER 4 SHORT-ANSWER QUESTIONS 1. An appraisal is an or of value. 2. The, and Act, also known as FIRREA, requires that states set standards for all appraisers. 3. Value in real estate is the "present
More informationHow to Read a Real Estate Appraisal Report
How to Read a Real Estate Appraisal Report Much of the private, corporate and public wealth of the world consists of real estate. The magnitude of this fundamental resource creates a need for informed
More information3. How much will 3,000 invested now amount to in eight years time if interest is earned at 5 per cent?
Practical exercises Chapter 3 1. A property was purchased at its market value eight years ago of 450,000. At that time, the national index that measures average retail prices was 189.4. The index number
More informationBroker. Basic Business Appraisal. Chapter 9. Copyright Gold Coast Schools 1
Broker Chapter 9 Basic Business Appraisal 1 Learning Objectives Describe the characteristics of the legal entities a business appraiser may encounter List at least 5 reasons for a business appraisal List
More informationconcepts and techniques
concepts and techniques S a m p l e Timed Outline Topic Area DAY 1 Reference(s) Learning Objective The student will learn Teaching Method Time Segment (Minutes) Chapter 1: Introduction to Sales Comparison
More informationabsorption rate ad valorem appraisal broker price opinion capital gain
absorption rate The estimated time required to sell or lease property within a designated area at its fair market value. ad valorem Real estate taxes imposed on property based on its assessed value. appraisal
More informationCalifornia Real Estate License Exam Prep: Unlocking the DRE Salesperson and Broker Exam 4th Edition
California Real Estate License Exam Prep: Unlocking the DRE Salesperson and Broker Exam 4th Edition ANSWER SHEET INSTRUCTIONS: The exam consists of multiple choice questions. Multiple choice questions
More informationChapter 9 - REPORTING AND ANALYZING LONG-LIVED ASSETS
Revised Summer 2018 Chapter 9 Review 1 Chapter 9 - REPORTING AND ANALYZING LONG-LIVED ASSETS LO 1: Explain the accounting for plant asset expenditures. Plant Assets (Also known as Property, Plant, and
More informationWYOMING DEPARTMENT OF REVENUE CHAPTER 7 PROPERTY TAX VALUATION METHODOLOGY AND ASSESSMENT (DEPARTMENT ASSESSMENTS)
CHAPTER 7 PROPERTY TAX VALUATION METHODOLOGY AND ASSESSMENT (DEPARTMENT ASSESSMENTS) Section 1. Authority. These Rules are promulgated under the authority of W.S. 39-11-102(b). Section 2. Purpose of Rules.
More informationYou will be given five minutes at the end of the examination to complete the front of any answer books used. May/June 2016 RE2VAL 2015/6 A 001
On admission to the examination room, you should acquaint yourself with the instructions below. You must listen carefully to all instructions given by the invigilators. You may read the question paper,
More informationSRI LANKA ACCOUNTING STANDARD
(REVISED 2005) SRI LANKA ACCOUNTING STANDARD PROPERTY, PLANT & EQUIPMENT THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA (REVISED 2005) SRI LANKA ACCOUNTING STANDARD PROPERTY, PLANT & EQUIPMENT The
More informationBUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 10
BUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 10 1. The client should give you a copy of their income and expense statements for the last 3 years showing their rental income by
More informationFundamentals of Real Estate APPRAISAL. 10th Edition. William L. Ventolo, Jr. Martha R. Williams, JD
A Fundamentals of Real Estate APPRAISAL 10th Edition William L. Ventolo, Jr. Martha R. Williams, JD Dennis S. Tosh, PhD William B. Rayburn, PhD, MAI, CFA Consulting Editors Dearb rri Real Estate Education
More informationPart 1. Estimating Land Value Using a Land Residual Technique Based on Discounted Cash Flow Analysis
Table of Contents Overview... v Seminar Schedule... ix SECTION 1 Part 1. Estimating Land Value Using a Land Residual Technique Based on Discounted Cash Flow Analysis Preview Part 1... 1 Land Residual Technique...
More information(a) Assets arising from construction contracts (see Section 23 of FRS 102, Revenue); and
Impairment of assets 14.1 This section sets out the considerations for social landlords in assessing impairment of assets, which is dealt with in Section 27 of FRS 102, Impairment of Assets. 14.2 Social
More informationFollowing is an example of an income and expense benchmark worksheet:
After analyzing income and expense information and establishing typical rents and expenses, apply benchmarks and base standards to the reappraisal area. Following is an example of an income and expense
More informationLKAS 17 Sri Lanka Accounting Standard LKAS 17
Sri Lanka Accounting Standard LKAS 17 Leases CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 17 LEASES paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 4 CLASSIFICATION OF LEASES 7 LEASES IN THE FINANCIAL STATEMENTS
More informationA Demonstration Appraisal Report. Of a. Located at. Date of Appraisal. Prepared for. Prepared by
A Demonstration Appraisal Report Of a Located at Date of Appraisal Prepared for Prepared by International Association of Assessing Officers Professional Designation Subcommittee 314 W. 10 th Street Kansas
More informationTable of Contents SECTION 1. Overview... ix. Course Schedule... xiii. Introduction. Part 1. Introduction to the Income Capitalization Approach
Table of Contents Overview... ix Course Schedule... xiii SECTION 1 Introduction Part 1. Introduction to the Income Capitalization Approach Preview Part 1... 1 Market Value... 3 Anticipation and Other Relevant
More informationTHE APPRAISAL OF REAL ESTATE 3 RD CANADIAN EDITION BUSI 330
THE APPRAISAL OF REAL ESTATE 3 RD CANADIAN EDITION BUSI 330 REVIEW NOTES by CHUCK DUNN CHAPTER 20 Copyright 2010 by the Real Estate Division and Chuck Dunn. All rights reserved CHAPTER 20 - THE INCOME
More informationInternational Accounting Standard 17 Leases. Objective. Scope. Definitions IAS 17
International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation
More informationCost Segregation Instructor Teaching Schedule (3-Hour)
Time Topic Pages Student Objectives 8:30-8:35 Course introduction Page 2 What is cost segregation? Objective of cost segregation: to increase cash flow Benefit of cost segregation Learning objectives Page
More informationUniversity of Nizwa / Dept. of Architecture / ARCH 506: Building Specification & Estimation / VALUATION / Ravishankar. KR / 5, January 2011.
Property Valuation Building Estimation and Costing Building Estimation and Costing Building Estimation and Costing is a vital part of Civil Engineering. No project can begin without the total Building
More informationMODULE 7-A: APPRAISALS, BPOS AND USPAP
MODULE 7-A: APPRAISALS, BPOS AND USPAP LEARNING OBJECTIVES One of the most challenging aspects of the real estate business is the development of prices or values of the rights to real estate. Buyers and
More informationAuditing PP&E, Including Leases
Auditing PP&E, Including Leases Learning Objectives Discuss typical audit risks and special considerations. Tailor an audit plan to assessed audit risk. Explain key controls related to PP&E. Describe lease
More informationTypical Valuation Approaches and How to Deal With Them
Typical Valuation Approaches and How to Deal With Them January, 2018 Anthony F. DellaPelle, Esq., CRE Shareholder, McKirdy, Riskin, Olson & DellaPelle, P.C. Morristown, New Jersey Christian F. Torgrimson,
More informationChapter 3 Business Valuation Report
CHAPTER 3: BUSINESS VALUATION REPORT Chapter 3 Business Valuation Report A1. Pre-IPO Valuation Need Company Restructuring and Financing It is not unusual that companies undergo series of restructuring
More informationBusiness Valuation More Art Than Science
Business Valuation More Art Than Science One of the more difficult aspects of business planning is business valuation. It is also one of the more important aspects. While owners of closely held businesses
More informationA guide to. Shared Ownership
A guide to Shared Ownership V1. August 2016 What is Shared Ownership? Shared Ownership is an affordable way to buy your own home. With Shared Ownership you can part-rent and part-buy a property. If you
More informationChapter 13. The Market Approach to Value
Chapter 13 The Market Approach to Value 11/22/2005 FIN4777 - Special Topics in Real Estate - Professor Rui Yao 1 Introduction Definition: An approach to estimating market value of a subject property by
More informationBasic Appraisal Procedures
Hondros Learning Basic Appraisal Procedures Timed Outline Topic Area Reference(s) Learning Objectives The student will be able to identify and/or apply: Teaching Method Time Segment (Minutes) Day 1 Chapter
More informationSSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES
SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES (Issued October 1987; revised February 2000) The standards, which have been set in bold italic type, should be read in the context of the background
More informationBroker. Sales Comparison, Cost Depreciation and Income Approaches. Chapter 7. Copyright Gold Coast Schools 1
Broker Chapter 7 Sales Comparison, Cost Depreciation and Income Approaches 1 Learning Objectives Describe the assumptions underlying the sales comparison approach Calculate the various adjustments necessary
More informationGas Station. Market Value Assessment in Saskatchewan Handbook. Gas Station Valuation Guide
Market Value Assessment in Saskatchewan Handbook Gas Station Saskatchewan Assessment Management Agency 2012 This document is a derivative work based upon a handbook entitled the "Market Value and Mass
More information[PROPOSED REVISED] CHAPTER 16 LOS ANGELES COUNTY COURT RULES
[PROPOSED REVISED] CHAPTER 16 LOS ANGELES COUNTY COURT RULES Set forth below is a proposed complete revision of Chapter 16, Eminent Domain, of the Local Rules. September 30, 2009 Commissioner Bruce E.
More informationResidential Flat Lease Extensions Information for Leaseholders on Extending Your Lease
Residential Flat Lease Extensions Information for Leaseholders on Extending Your Lease Leases with an unexpired term of less than approximately 83 years are generally considered short and may cause the
More informationSLAS 19 (Revised 2000) Sri Lanka Accounting Standard SLAS 19 (Revised 2000) LEASES
Sri Lanka Accounting Standard SLAS 19 (Revised 2000) LEASES 265 Introduction This Standard (SLAS 19 (revised 2000) ) replaces Sri Lanka Accounting Standard SLAS 19, Accounting for Leases ( the original
More informationChapter 8 VALUATION OF AND INFORMATION ON PROPERTIES. Definitions
Chapter 8 VALUATION OF AND INFORMATION ON PROPERTIES Definitions 8.01 In this Chapter:- (1) carrying amount means, for an applicant, the amount at which an asset is recognised in the most recent audited
More informationPolicy Title ACCOUNTING FOR TANGIBLE CAPITAL ASSETS
Department Administration ACCOUNTING FOR TANGIBLE CAPITAL ASSETS Date: October 13, 2011 1 of 6 Resolution No. C/627/11 Policy Statement: This policy prescribes the accounting treatment for tangible capital
More informationIntangible Assets IAS 38, IAS 36, IFRS 3
Intangible Assets IAS 38, IAS 36, IFRS 3 Agenda 1. Introduction 2. Recognition 3. Measurement 4. Impairment of intangible assets (IAS 36) Basic concept Cash-Generating Units 5. Disclosures 2 1 Introduction
More informationCHAPTER 9 LONG-LIVED ASSETS SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY
CHAPTER 9 LONG-LIVED ASSETS SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 17. 2 K 33. 2 C 49. 3 K 65.
More informationPREPARING FOR THE MINNESOTA INCOME PROPERTY CASE STUDY EXAM WORKSHOP
PREPARING FOR THE MINNESOTA INCOME PROPERTY CASE STUDY EXAM WORKSHOP Date: September 18, 2018 Location: Country Inn & Suites Chanhassen, MN Instructor: Bob Wilson, CAE, ASA Revised October, 2017 PREPARING
More informationCornerstone 2 Basic Valuation of Machinery and Equipment
INSTITUTE FOR PROFESSIONALS IN TAXATION PERSONAL PROPERTY TAX SCHOOL Cornerstone 2 Basic Valuation of Machinery and Equipment Learning Objectives At the end of this section, the learner will be able to:
More informationCOMPARATIVE METHOD OF VALUATION
COMPARATIVE METHOD OF VALUATION BSc Property Studies Year 1 5 th October 2013 Comparative method of Valuation Comparative method is used as a basis in all methods of valuation and compares like with like.
More informationNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017
4 PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS Housing accom Care and supported Temporary accom Rent receivable 114,855 16,847 9,659 1,081 142,442 141,633 Service charges 6,288 6,620
More informationMath Relating to Real Property Appraisals
1. Sales Comparison Approach Math Relating to Real Property Appraisals A. If the comparable property is superior in a feature, you subtract value from the comparable. Example: Comp #l has a 1-car garage
More information2) All long-term leases should be capitalized in the accounts by the lessee.
Chapter 18 Leases 1) The principal attribute of finance leases is that the risks and rewards of asset ownership are deemed to remain with the lessor. LO: 18-02 List the criteria for classification of a
More informationLand, Agricultural Improvements, CAFO, Rural Residence, Farm
*--FSA Appraisal Guidelines Land, Agricultural Improvements, CAFO, Rural Residence, Farm The following information elements and content descriptions are provided as guidelines to assist lenders and appraisers
More informationAssessment and Taxation Department Service de l évaluation et des taxes VALUATION OF HOTELS General Assessment
Assessment and Taxation Department Service de l évaluation et des taxes VALUATION OF HOTELS 2012 General Assessment City of Winnipeg Assessment and Taxation Department May 4, 2011 TABLE OF CONTENTS INTRODUCTION...
More informationIntangibles CHAPTER CHAPTER OBJECTIVES. After careful study of this chapter, you will be able to:
CHAPTER Intangibles CHAPTER OBJECTIVES After careful study of this chapter, you will be able to: 1. Explain the accounting alternatives for intangibles. 2. Record the amortization or impairment of intangibles.
More informationAppraiser Qualifications Board
Appraiser Qualifications Board Course Analysis Course Name Provider Date of Approval Course Expiration Date This detailed breakdown of the subject content of this course is provided by the AQB as part
More informationSuggested solutions to practical exercises
Suggested solutions to practical exercises Chapter 3 1. 450,000 231.5/189.4 = 550,026.36 = value now if just kept pace with inflation As actual value is 600,000 the real gain in value is 49,973.64 This
More information4/10/2012. Long-Lived Assets and Depreciation. Overview of Long-lived Assets. Learning Objectives (LO) Learning Objectives (LO)
Learning Objectives (LO) CHAPTER Long-Lived Assets and Depreciation 8 After studying this chapter, you should be able to 1. Distinguish a company s expenses from expenditures that it should capitalize
More informationSri Lanka Accounting Standard-LKAS 17. Leases
Sri Lanka Accounting Standard-LKAS 17 Leases -516- Sri Lanka Accounting Standard-LKAS 17 Leases Sri Lanka Accounting Standard LKAS 17 Leases is set out in paragraphs 1 69. All the paragraphs have equal
More information.01 The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
COMPARISON OF GRAP 16 WITH IAS 40 GRAP 16 IAS 40 DIFFERENCES Objective.01 The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.
More informationCapital Assets, Supplies, Equipment, and Intangible Property
Capital Assets, Supplies, Equipment, and Intangible Property 1 Uniform Guidance vs. OMB Circulars Prior to the Uniform Guidance, requirements governing cost Designed for DOL-ETA direct principles, administrative
More informationGENERAL ASSESSMENT DEFINITIONS
21st Century Appraisals, Inc. GENERAL ASSESSMENT DEFINITIONS Ad Valorem tax. A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of exemptions, use-value assessment laws, and
More informationCourse Income Approach To Value. Course Description
Course 102 - Income Approach To Value Course Description The Income Approach to Valuation is designed to provide the students with an understanding and working knowledge of the procedures and techniques
More informationLeasing versus Buying Business Location
Brief #04.54 Latest Revision: 01/2014 Southern Ohio Chapters Leasing versus Buying Business Location Should you lease business property for your factory, warehouse, store or office, or should you buy it?
More informationLeases. (a) the lease transfers ownership of the asset to the lessee by the end of the lease term.
Leases 1.1. Classification of leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease
More informationLeases (S.566) Manual Part
Leases (S.566) Manual Part 19-2-21 Document last reviewed May 2017 1 Leases (S.566) 21.1 A lease is a particular form of wasting asset which is subject to special rules. For Capital Gains Tax purposes,
More informationState of Mexicali Ad Valorem Taxation of Property Statutes, Rules and Regulations
STATUTES CODE OF MEXICALI OF 2000, TITLE 50 REVENUE AND TAXATION, CHAPTER 7 AD VALOREM TAXATION OF PROPERTY Sec. 50-7-1. Legislative intent The intent and purpose of the tax laws of this state are to have
More informationINSTITUTION OF VALUERS
INSTITUTION OF VALUERS Plot No. 3, Parwana Road, Pitampura, New Delhi - 110 034 VALUATION OF REAL ESTATE SIX MONTHS COURSE GENERAL INFORMATION Name of the course : Six Month Course on Valuation of Real
More informationFour (4) Factors in Investment Definition: Investment
Introductions Your name Where you work Your job responsibilities How long you have been in the industry What you hope to get from this class Chapter 1: Investments Agenda 2 Investments Adding Value to
More informationRegistration Course Description Classroom Rules & Procedures
Course Schedule SECTION 1. (Day 1 Morning) Introduction Part 1. Introduction and Overview Registration Course Description Classroom Rules & Procedures Part 2. Components of Discounted Cash Flow Analysis
More informationTo download more slides, ebook, solutions and test bank, visit CHAPTER 21 ACCOUNTING FOR LEASES
CHAPTER 21 ACCOUNTING FOR LEASES IFRS questions are available at the end of this chapter. TRUE-FALSE Conceptual Answer No. Description T 1. Benefits of leasing. F 2. Accounting for long-term leases. F
More informationprocedures Basic Appraisal F i n a l Examination #2 2 nd edition
F i n a l Examination #2 A n s w e r Key Page 82 1. When determining effective gross income from potential gross income, an appraiser considers a. debt service. b. depreciation. c. fixed expenses. d. vacancy
More informationRULES OF GEORGIA REAL ESTATE APPRAISERS BOARD CHAPTER STANDARDS FOR APPRAISAL COURSES TABLE OF CONTENTS
CHAPTER 539-2 STANDARDS FOR APPRAISAL COURSES RULES OF GEORGIA REAL ESTATE APPRAISERS BOARD CHAPTER 539-2 STANDARDS FOR APPRAISAL COURSES TABLE OF CONTENTS 539-2-.03 Courses. Amended. 539-2-.03 Courses.
More informationMass Appraisal of Income-Producing Properties
Chapter 10 Mass Appraisal of Income-Producing Properties Whether valuing income-producing property or residential property, you can use similar information and methods for collecting and analyzing data
More informationThe Three Approaches to Value
Chapter 6 The Three Approaches to Value The appraiser considers three approaches to develop indications of value. These are: Cost approach; Sales comparison (market) approach; and Income approach. All
More informationFLORIDA BROKER PRELICENSE (FREC II) (V2)
FLORIDA BROKER PRELICENSE (FREC II) (V2) TIME CONTENT OUTLINE LEARNING OBJECTIVES -- After this segment, the Licensing 7 hours 45 mins. License Law and Rules 1 explain the purpose of the license law describe
More informationWilliam & Mary Law School Scholarship Repository
College of William & Mary Law School William & Mary Law School Scholarship Repository William & Mary Annual Tax Conference Conferences, Events, and Lectures 1971 Leasing Arrangements Lawrence P. Roesen
More informationBUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 9
BUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 9 1. Students should give a brief definition of each of the following terms and provide one example which illustrates how they are
More informationCurrent State of Property. Taxation in the Netherlands. Council for Real Estate Assessment (English) Waarderingskamer (Dutch)
Current State of Property WAARDERINGSKAMER Taxation in the Netherlands Council for Real Estate Assessment (English) Waarderingskamer (Dutch) Council for real estate assessment Main task: quality control
More informationASSESSMENT METHODOLOGY
2018 ASSESSMENT METHODOLOGY MULTI-RESIDENTIAL MANUFACTURED HOME PARK A summary of the methods used by the City of Edmonton in determining the value of multi-residential manufactured home park land properties
More informationThe Basics of a Commercial Lease
The Basics of a Commercial Lease Contents Introduction 3 First things first, what is a commercial lease? 3 What s the difference between a commercial property lease and a residential one? 4 Are there ever
More informationSOLUTIONS Learning Goal 19
S1 Learning Goal 19 Multiple Choice 1. b 2. a 3. c 4. b However, the double-declining-balance method calculates the depreciation expense on the full asset cost until the final year of use. 5. d Total appraised
More informationIn December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects.
International Accounting Standard 17 Leases In April 2001 the International Accounting Standards Board (IASB) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards
More informationStaircasing Buying more shares in your home
Staircasing Buying more shares in your home 1 Contents What is staircasing? Staircasing and your lease General information Getting started 03 PAGE 04 PAGE 05 PAGE 08 PAGE 2 What is staircasing? If you
More informationLand / Site Valuation A Basic Review. Leslie G. Pruitt Certified General Appraiser
Land / Site Valuation A Basic Review Leslie G. Pruitt Certified General Appraiser Whose is the land, it is to the sky and the depth Whose is the land, it is to the sky and the depth This ancient maxim
More informationVauxhall Sky Gardens Wandsworth Road London SW8
Proposed development of Vauxhall Sky Gardens 143 161 Wandsworth Road London SW8 Affordable Housing Viability Submission Explanatory Notes January 2013 HEDC 230 Court Road London SE9 4TX 020 8265 3456 07711
More informationIndustrial and Commercial Real Estate Appraisal Procedures
Property Valuation Thought Leadership Industrial and Commercial Real Estate Appraisal Procedures John C. Ramirez The application of the asset-based approach to business valuation often involves the appraisal
More informationB EXERCISES E11-1B (Depreciation Computations SL, SYD, DDB) Instructions (a) (b) (c) E11-2B (Depreciation Conceptual Understanding) Instructions (a)
B EXERCISES E11-1B (Depreciation Computations SL, SYD, DDB) Vaughn Company purchases equipment on January 1, Year 1, at a cost of $500,000. The asset is expected to have a service life of 10 years and
More informationA Demonstration Appraisal Report. Of a. Located at. Date of Appraisal. Prepared for. Prepared by
A Demonstration Appraisal Report Of a Located at Date of Appraisal Prepared for Prepared by International Association of Assessing Officers Professional Designation Subcommittee 314 West 10 th Street Kansas
More informationPlant assets are resources that have
10-1 LEARNING OBJECTIVE 1 Explain the accounting for plant asset expenditures. Plant assets are resources that have physical substance (a definite size and shape), are used in the operations of a business,
More informationChapter 08 - Long-Term Assets. Chapter Outline
Section 1 Plant Assets I. Cost Determination Plant assets are tangible assets used in a company's operations that have a useful life of more than one accounting period. Consistent with cost principle,
More informationREAL ESTATE RENOVATION DECISIONS BASED ON COST APPROACH APPRAISING PRINCIPLES Real estate renovation decisions
REAL ESTATE RENOVATION DECISIONS BASED ON COST APPROACH APPRAISING PRINCIPLES Real estate renovation decisions I. PŠUNDER University of Maribor, Faculty of Civil Engineering, Maribor, Slovenia Durability
More informationCourse Outline. TERM EFFECTIVE: Fall 2016 CURRICULUM APPROVAL DATE: 02/22/2016
5055 Santa Teresa Blvd Gilroy, CA 95023 Course Outline COURSE: RE 164 DIVISION: 50 ALSO LISTED AS: TERM EFFECTIVE: Fall 2016 CURRICULUM APPROVAL DATE: 02/22/2016 SHORT TITLE: REAL ESTATE APPRAIS LONG TITLE:
More informationChapter 37. The Appraiser's Cost Approach INTRODUCTION
Chapter 37 The Appraiser's Cost Approach INTRODUCTION The cost approach for estimating current market value starts with the recognition that a parcel of real estate contains two components - the land and
More informationEUROPEAN UNION ACCOUNTING RULE 7 PROPERTY, PLANT & EQUIPMENT
EUROPEAN UNION ACCOUNTING RULE 7 PROPERTY, PLANT & EQUIPMENT Page 2 of 10 I N D E X 1. Objective... 3 2. Scope... 3 3. Definitions... 3 4. Recognition... 4 4.1 General recognition principle... 4 4.2 Initial
More informationThis article is relevant to the Diploma in International Financial Reporting and ACCA Qualification Papers F7 and P2
REVENUE RECOGNITION This article is relevant to the Diploma in International Financial Reporting and ACCA Qualification Papers F7 and P2 For almost all entities other than financial institutions, revenue
More informationChapter 11 Investments in Noncurrent Operating Assets Utilization and Retirement
Chapter 11 Investments in Noncurrent Operating Assets Utilization and Retirement 1. The annual depreciation expense 2. The depletion of natural resources 3. The changes in estimates and methods in the
More informationTable of Contents. Chapter 1: Introduction (Mobile Technology Evolution) 1
Chapter 1: Introduction (Mobile Technology Evolution) 1 I. WHY APPRAISAL IS IMPORTANT (p. 3) II. DEFINITION OF APPRAISAL (p. 4) A. Opinion (p. 4) B. Value (p. 5) C. Appraisal Art or Science? (p. 5) D.
More informationwill not unbalance the ratio of debt to equity.
paragraph 2-12-3. c.) and prime commercial paper. All these restrictions are designed to assure that debt proceeds (including Title VII funds disbursed from escrow), equity contributions and operating
More informationNon-current Assets. Prof.(FH) Dr. Walter Egger
Non-current Assets Prof.(FH) Dr. Walter Egger IAS 38 Intangible Assets Intangible Asset Is an identifiable non-monetary asset without physical substance Identifiability Seperable (can be seperated, divided
More informationTOWN OF LINCOLN COUNCIL POLICY
Page 1 of 10 PURPOSE The purpose of this policy is to prescribe the accounting treatment for tangible capital assets so that users of the financial report can discern information about the investment in
More information