Appraisal Report & Documentation Flashcards
7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Appraisal Report & Documentation flashcards as text
Which statement best describes the 'effective date' in a firearms appraisal report?
Answer: The date as of which the value opinion applies
The effective date establishes the point in time to which the value conclusion applies, which may differ from the report signing date.
An appraiser is documenting a firearm with non-original replacement stocks. How should this be addressed in the report?
Answer: Note the replacement stocks and explain their negative impact on value
Non-original parts are a material fact that must be disclosed and their effect on value must be analyzed in the appraisal report.
What is the purpose of including comparable sales data in a firearms appraisal report?
Answer: To support and substantiate the value conclusion
Comparable sales data provides market evidence that supports and validates the appraiser's value conclusion.
When documenting firearm condition in a report, which grading system is most widely recognized in the US collectible firearms market?
Answer: NRA Condition Standards
The NRA Condition Standards (Perfect, Excellent, Very Good, Good, Fair, Poor) are the industry benchmark for grading collectible firearms in the US.
A client requests an appraisal report for a shotgun they intend to donate to a museum. Which value premise is most appropriate?
Answer: Fair market value
IRS guidelines require fair market value for charitable donation appraisals, defined as the price a willing buyer would pay a willing seller with neither under compulsion.
Which component of an appraisal report describes the scope of research and analysis performed by the appraiser?
Answer: Scope of work statement
The scope of work statement details what research, inspections, and analytical methods the appraiser employed to develop the value opinion.
How should an appraiser handle a situation where the firearm's serial number has been partially obscured by rust but is still partially legible?
Answer: Document the condition fully and note any legal implications regarding the partially obscured number
A partially obscured serial number must be fully documented, and the report should note potential legal implications under federal and state law.