Airah Mae O.

Detangco BSA-4A

VALUATION METHODS
QUIZ
SEPT. 19, 2023

1. What qualifications should be possessed by a reputable valuer?

• A reputable valuer should have the proper credentials, skills, and experience. Estimate
property value for a variety of purposes, including transactions involving property
ownership transfers, property used as collateral to secure loans and mortgages,
property subject to litigation or pending tax settlement, and property treated as fixed
assets in financial reporting.

2. Differentiate an internal against an external valuer.

• Internal Valuers work for either the entity that owns the assets or the accounting firm
that oversees generating the entity's financial records and/or reports. An Internal Valuer
may typically fulfill all the standards for independence and professional neutrality.
Required by this Code of Conduct but may not always be suitable to perform the
function of independent Valuer in some types of assignments due to public display and
regulation.
• An external valuer is one who, together with any associates, has no substantial ties to
the client, an agent operating on the client's behalf, or the topic of the task.

3. What are the salient part of the Code of Ethics that a valuer should observe?
• Integrity
➢ A Valuer shall not operate in such a way that is deceptive or deceitful. A Valuer
must not intentionally generate and distribute a report that includes viewpoints
that are erroneous, inaccurate, or prejudiced analysis. Must not contribute to or
engage in a valuation service that other people provide. reasonable appraisers
would not consider to be behaving ethically or lawfully and conform
in accordance with the country's laws and regulations where he or she works or
where an assignment is being completed. should not intentionally utilize
assertions that are untrue, misleading, or exaggerated advertisement in order to
obtain assignments. A Valuer must verify that any employees a person or
subordinate who assists with the compliance with this Code of Conduct
• Conflicts of Interest
➢ A Valuer may not act for two or more clients. save for the parties in the same
case. Those involved must provide written approval.A valuer must consider all
feasible options. procedures to guarantee that there are no conflicts of interest
responsibility arises between his or her own interests and the interests of others
clients, as well as those of other clients, the Valuer his or her company,
relatives, acquaintances, or colleagues associates. Potential confrontations
should be avoided. disclosed in writing prior to acceptance instructions. Any
such disagreements If the Valuer later becomes aware, it must be
communicated immediately. If so, Conflicts are brought to the Valuer's notice.
 Following the completion of the appraisal, disclosure must be made within a
reasonable time.
• Confidentiality
➢ A Valuer must at all times deal with client ‘s affairs with proper discretion and
confidentiality. A Valuer must not disclose sensitive factual data obtained from
a client, or the results of an assignment prepared for a client, to anyone other
than those specifically authorized by the client except when legally required to
do so as in situations where a Valuer must comply with certain quasi-judicial
proceedings within the recognized national professional valuation body of which
the Valuer is a member.
• Impartiality
➢ A Valuer must complete an assignment. with the utmost independence,
objectivity, and impartiality, as well as without Personal interests must be
accommodated. A Valuer must not accept an offer. task involving the reporting
of thoughts and conclusions that have already been formed. Fees associated
with an assignment must not be dependent on a predefined the result of any
valuation or other.

4. How can a valuer maintain confidentiality and impartiality? Why are they important in his
job?
• Confidentiality
➢ A Valuer must always deal with client ‘s affairs with proper discretion and
confidentiality. A Valuer must not disclose sensitive factual data obtained from
a client, or the results of an assignment prepared for a client, to anyone other
than those specifically authorized by the client except when legally required to
do so as in situations where a Valuer must comply with certain quasi-judicial
proceedings within the recognized national professional valuation body of which
the Valuer is a member.
• Impartiality
➢ A Valuer must complete an assignment. with the utmost independence,
objectivity, and impartiality, as well as without Personal interests must be
accommodated. A Valuer must not accept an offer. task involving the reporting
of thoughts and conclusions that have already been formed. Fees associated
with an assignment must not be dependent on a predefined the result of any
valuation or other

The confidentiality and impartiality approach protects the trade secrets of all clients that enterprises
service. The company is required to keep all client information and documents secret.

5. What competencies are necessary for a valuer?

• Acceptance of Instructions
➢ Prior to accepting a task or job, entering into a contract to execute any A Valuer
must correctly identify the assignment be definite about the problem to be
addressed He or she possesses the necessary expertise and knowledge.
Alternatively, in the case of a foreign assignment, will be able to work alongside
a professional having expertise and understanding of market forces, language,
and the law to Competently perform the work.
• Outside Assistance
➢ When using the services of a third party, aid required to supplement A Valuer
should first assess his or her own abilities. ensure that those assisting have the
required talents and ethical ideals. The client's permission should be obtained.
acquired when outside help is sought, as well as the identification and scope of
the helpers Their role should be revealed in the Report of the appraiser.
• Efficiency and Diligence
➢ The appraiser should act quickly and efficiently in carrying out the client's
instructions guidelines and must keep the customer informed and apprised of
the Valuer's progress. Instructions should be rejected if possible. conditions
impede adequate diligence inquiry, job quality, and completion at a reasonable
period. Prior to reporting the value, Written instructions must be obtained from
the customer and/or written confirmation by a Valuer in sufficient depth to
avoid any problems misinterpretation. A Valuer should use caution. inquiries
and investigations to ensure that the data for value analysis is accurate. It is
correct and reliable. A valuer must create a work file. for each task that, once
completed, completeness, should include a genuine copy, in All written reports,
communications, and other documents should be kept in print or electronic
form (and properly backed up). and memos, as well as suitable file notes which
support the Valuer's assessment by method of investigation, objective
comparison, deduction, and computation. Each assignment's work file should be
kept for at least one year five years after the completion of assignment