30 Questions
What is the objective of the International Valuation Standards Committee?
To promote fundamentals of valuation methods and techniques worldwide
Why is land considered essential?
Because it is important for various disciplines and affects societies
What brings land into focus for consideration by different disciplines?
Its importance in various aspects of life
What does the International Valuation Standards Committee believe is inappropriate?
Articulating all appropriate fundamentals within the body of each Standard
What is the relationship between land valuation and various disciplines?
Land valuation affects different disciplines and societies
Why are the fundamentals underpinning valuation considered universal?
Because these fundamentals are generally similar worldwide
What do Valuers have to demonstrate to be considered professionals?
Education, training, competence, and demonstrated skills
What may cause changes in price levels and the relative purchasing power of money?
Technological change
Which principle is key in determining the utility and productivity of a property?
Supply and demand principle
Which core discipline do Valuers specialize in?
Economics
What concept includes physical land and human-made items attached to the land?
Real Estate
What do Valuers follow to conduct their professional practice?
Generally Accepted Valuation Principles (GAVP)
What are the possible uses of an asset, as mentioned in the text?
All of the above
When is an asset recognized in the balance sheet?
When future economic benefits are probable and its cost can be measured reliably
What distinguishes tangible assets from intangible assets?
Physical existence
Which of the following is an example of a current asset?
Obligations owed to the entity
What category do property, plant, machinery, and equipment fall into?
Non-current assets
What is the main condition for recognizing an asset in the balance sheet?
Having a cost or value measurable reliably
What should a Valuer do if required to apply a particular definition of Market Value to meet legal or statutory requirements?
Make specific disclosure of the fact and describe the impact of any differences on the value estimated
In accordance with International Valuation Standards (IVS), how will the term Market Value be treated in valuation assignments?
It will conform to the IVS definition
What information should all valuation reports make clear?
The purpose and intended use of the valuation
When financial reporting is involved in a valuation, what should the report specifically identify?
The asset class for each asset and the basis for their placement
What falls within the scope of International Valuation Standards and related guidance notes?
Estimation and reporting of property and asset values
Why is proper understanding of terminology essential for Valuers and readers of their reports?
To ensure clear communication and understanding
What is the purpose of the capitalization process in property valuation?
To convert income data into a value estimate
How does the cost approach in property valuation differ from the comparative approach?
By evaluating the cost of acquiring a modern equivalent asset
What does the principle of substitution suggest in property valuation?
The income stream that produces the highest return leads to the most probable value figure
Which factor is typically considered in determining the value estimate through capitalization?
Return on investment measures
Why might an asset being valued be less attractive than its modern equivalent in real estate?
As a result of its age or obsolescence
What adjustment is necessary to reflect the difference between a property's value and that of its modern equivalent?
A depreciation adjustment
This quiz covers the criteria for recognizing an asset in the balance sheet according to the International Financial Reporting Standards (IFRS). Test your knowledge on when an asset can be considered as recognized and included in financial statements.
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