SAEE International Valuation Standards 3

Question 1

Which IVS general standard covers the requirements for valuation reports?

Accepted Answer

IVS 103 Reporting

Answer

IVS 103 sets out the requirements for communicating the valuation in a report.

Question 2

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

Accepted Answer

Specialized assets with no active market

Answer

The cost approach suits specialized assets where market or income evidence is limited.

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

IFRS fair value is an accounting concept defined under IFRS 13 for financial reporting purposes.

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

IVS requires valuers to identify the source and assess whether reliance is reasonable.

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

Highest and best use reflects the use that maximizes an asset's value within those constraints.

SAEE Test Practice Test