KAZAKHSTAN VALUATION STANDARD “DATABASES AND TYPES OF VALUE” Done by: Aimanova Aruana, Botbayeva Zhamilya, Saidakberov Berik F-1002
GENERAL PROVISIONS The present state Valuation Standard "Databases and the types of value" (hereinafter - the Standard) is designed according to the Law of the Republic of Kazakhstan "On appraisal activities in the Republic of Kazakhstan" using international valuation standards and reveals purpose of the evaluation, the intended use the result of evaluation and determination of the market value and other kinds of value, different from market. This standard is mandatory for the implementation of the evaluation. The basic principles of valuation activities are objectivity and reliability. Mandatory and the initiative assessment is a type of evaluation.
GENERAL PROVISIONS All types of database value are divided into two types: the market database value and the three categories of non-market databases values, and the use of separate subspecies: market database value applied to determine the most probable value of the property according to which it is possible to exchange on the free and open market; Non-market database value based on considerations of economic utility or function of the property rather than on its ability to be bought by market participants or the effects of unusual or atypical market conditions. Selecting the type of value is preceded by conclusion of a contract at bringing the property assessment and depends on the purpose of evaluation of the property, its features and regulatory requirements. In the case when in normative legal acts of assessment, the contract for the evaluation of the property or court order is not observed the type of value which is determined by the assessment, it is determined market value.
GENERAL PROVISIONS The cost is an economic concept concerning price, with respect to which the most likely to ask for buyers and sellers available for purchase of goods or services. Cost is not the fact, and the calculated value of prices of specific products and services in a particular time in accordance with the selected database assessment. The economic concept of value expresses the view of the market on the benefits gained by the owner of the goods or by the services user on the valuation date. The purpose of evaluation is to establish the values a specific type of value, which is determined by the intended use of the evaluation result and is installed in the contract with the customer, the evaluation report.
GENERAL PROVISIONS The result of evaluation is the total value of estimated cost of the object. The evaluation result is used in the determination of the parties for the transaction price or other actions with the object of evaluation, including for transactions of purchase and sale, rental or mortgage, insurance, lending, making the share capital for the purposes of taxation in the financial statements , restructuring and privatization of enterprises, resolving property disputes, management decision-making. In the implementation of valuation activities are used market value and its subspecies, and other value types, types of values used in interim calculations and financial statements. The market value and its subspecies: liquidation value; scrap page value; terminal (reverse) cost. Other value: investment; fair; special; synergy; tax; mortgage; collateral; insurance; cadastral; customs; state property; for the land allocation. Types of values used in interim calculations and financial statements: full replacement cost; the cost of reproduction; book value; original cost.
MARKET DATABASE OF THE VALUE The concept of market value is in setting the prices about which participants of the transaction already have agreed, freely acting on an open and competitive market. Property Selling takes place both in the international and local market. The market includes a sufficient number of buyers and sellers, also for this typical a limited number of participants in market relations. The market value of the property reflects its most efficient use, which increases productivity, and is feasible, legally permissible and practicable from a financial point of view. This fact is taken into account market participants in determining the offer price.
MARKET DATABASE OF THE VALUE The market value does not include the cost of the buyer and seller in implementing of the transaction, as well as the costs of taxes that must be paid by results of this transaction. The market value is determined by the appraiser: for confiscation of property for state needs; in determining the value of outstanding shares of the Company purchased by the Company under resolution of General Meeting of shareholders or a decision of the Board of Directors (Supervisory Board); in determining the value of non-monetary contributions to the charter capital; in determining the value of the property of the debtor in bankruptcy proceedings; in determining the value of the object of collateral including mortgage; in determining the value of property received free; the privatization of state assets; in the conduct of enforcement proceedings; in the assignment of claims rights; in the distribution of property; in the transfer to the trust management or lease; in other cases provided by law.
CATEGORIES OF NON-MARKET DATABASE OF VALUE Non-market database of value are divided into three categories: The first category reflects the benefits of a particular subject from owning property (investment value or worth, special price); The second category of valuation bases reflects the price that on a reasonable basis agreed between two or more certain parties in the exchange of assets (fair value, synergistic value); The third category sets type of value and methods of assessment (tax value, insurance value, mortgage value, collateral value, cadastral value, customs value).
FEATURES OF THE APPLICATION OF CERTAIN SUBSPECIES OF VALUE Depending on the type of assessed property and its actual or perceived state at the time of assessment of market value is divided into subspecies: liquidation value; scrap page value; terminal (reverse) value. In the intermediate calculations of the market and other value, and also financial statementsare applying the following types of value: full reinstatement cost of the project evaluation; the replacement cost; the cost of reproduction; book value; original value.
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