SAEE International Valuation Standards 3

Question 1

Which IVS general standard covers the requirements for valuation reports?

Accepted Answer

IVS 103 Reporting

Answer

IVS 101 Scope of Work

Answer

IVS 102 Investigations and Compliance

Answer

IVS 104 Bases of Value

Question 2

The cost approach is generally most appropriate for which type of asset?

Accepted Answer

Specialized assets with no active market

Answer

Listed equity shares

Answer

Frequently traded commodities

Answer

Government bonds

Question 3

Under IVS, 'Fair Value' as defined by IFRS differs from market value mainly because it is defined by which framework?

Accepted Answer

Financial reporting standards (IFRS 13)

Answer

Tax legislation

Answer

Insurance regulation

Answer

Banking capital rules

Question 4

What does IVS require when a valuer relies on information provided by the client?

Accepted Answer

Disclose the source and consider its reliability

Answer

Accept it without comment

Answer

Discard it entirely

Answer

Republish it as the valuer's own data

Question 5

Which concept describes the most likely use of an asset that is physically possible, legally permissible, and financially feasible?

Accepted Answer

Highest and best use

Answer

Salvage value

Answer

Going concern

Answer

Liquidation value

Question 6

Under IVS, what must a valuer disclose if departing from a standard?

Accepted Answer

The departure and the reasons for it

Answer

Nothing, departures are routine

Answer

Only the client's name

Answer

The fee charged

Question 7

Which of the following best describes 'Investment Value' under IVS?

Accepted Answer

Value to a particular owner for specified objectives

Answer

The value to the general market

Answer

The cost to insure the asset

Answer

The forced sale value