BCA BCA Appraisal Report Writing & Documentation 2

Question 1

Which section of a BCA appraisal report typically presents the reconciliation of value conclusions from multiple approaches?

Accepted Answer

Final opinion of value / reconciliation

Answer

The reconciliation section weighs the results of each valuation approach and explains the appraiser's reasoning for the final concluded value.

Question 2

What does 'effective date of value' mean in a BCA appraisal report?

Accepted Answer

The specific date as of which the value opinion applies

Answer

The effective date of value is the specific point in time to which the value conclusion applies, which may differ from the report date.

Question 3

In BCA reporting, an 'extraordinary assumption' differs from a 'hypothetical condition' because:

Accepted Answer

Extraordinary assumptions presume uncertain facts as true, while hypothetical conditions presume things known to be false

Answer

An extraordinary assumption treats an uncertain fact as true for purposes of the analysis, whereas a hypothetical condition assumes something known to be contrary to fact.

Question 4

Why should a BCA appraiser retain a complete workfile even after delivering the report?

Accepted Answer

To support the opinions and conclusions if later challenged or reviewed

Answer

USPAP requires appraisers to maintain a workfile containing all data, analyses, and correspondence supporting the report for a minimum retention period.

Question 5

When a BCA report includes a 'going concern' premise, what does this assume about the subject business?

Accepted Answer

The business will continue to operate indefinitely into the future

Answer

A going concern premise assumes the business will continue to operate normally, which typically supports a higher value than a liquidation premise.

(BCA) Business Certified Appraiser Practice Test

(BCA) Business Certified Appraiser Practice Test

BCA BCA Appraisal Report Writing & Documentation 2