SAEE International Valuation Standards 2

Question 1

Which organization issues the International Valuation Standards (IVS)?

Accepted Answer

International Valuation Standards Council (IVSC)

Answer

International Accounting Standards Board (IASB)

Answer

Royal Institution of Chartered Surveyors (RICS)

Answer

Financial Accounting Standards Board (FASB)

Question 2

Under IVS, what is the primary purpose of identifying the 'basis of value' in an assignment?

Accepted Answer

To define the type of value being estimated and its assumptions

Answer

To set the valuer's professional fee

Answer

To determine the report's publication date

Answer

To select the printing format of the report

Question 3

Which of the following is the IVS definition focus of 'Market Value'?

Accepted Answer

Estimated amount in an arm's-length transaction between willing parties

Answer

The amount paid by the most aggressive bidder

Answer

The insured replacement cost

Answer

The book value recorded in accounts

Question 4

What does the IVS framework require a valuer to do regarding assumptions and special assumptions?

Accepted Answer

Clearly state and disclose them in the report

Answer

Avoid using any assumptions

Answer

Keep them confidential from the client

Answer

Apply them only to tangible assets

Question 5

Which valuation approach estimates value based on comparable transactions in the market?

Accepted Answer

Market approach

Answer

Cost approach

Answer

Income approach

Answer

Residual approach

Question 6

Under IVS, the income approach converts future cash flows into a single value primarily through which technique?

Accepted Answer

Discounting or capitalization

Answer

Indexation to inflation

Answer

Straight-line depreciation

Answer

Replacement cost adjustment

Question 7

What is the 'scope of work' under IVS intended to establish before a valuation begins?

Accepted Answer

The terms, extent, and limitations of the engagement

Answer

The final value conclusion

Answer

The marketing strategy for the asset

Answer

The tax liability of the owner