Kazakhstan valuation standard Defining the cadastral value of

Kazakhstan valuation standard “Defining the cadastral value of real estate” Done by: Kerimbek M. Nussupova A. Shamiyev Islam F-1002

General provisions Cadastral value is the set in the state cadastral valuation of the market value of the property determined by the methods of mass appraisal, installed and approved in accordance with the laws governing the conduct of cadastral valuation. The cadastral value is determined by the appraiser, in particular, for the purposes of taxation.

General provisions This standard is adopted and approved in order to present a general scheme of the mass appraisal, designed to taxation of real estate, as well as the sale or lease of land owned by the state. The cadastral value is determined for both properties are present in the open market, and for the real estate market which is limited or absent.

General provisions In determining the cost of inventory, assessment objects are real estate, details of which are contained in the state cadastral of real estate at the valuation date.

General provisions The definition of cadastral values using mass appraisal includes the following steps: 1) sign the contract for the land evaluation, with the presentation of the list of properties to be assessed ; 2 ) identification of properties that need to be evaluated ; 3) The group of properties that need to be evaluated ; 4 ) identification of areas of the market by sustainable behavior on the part of owners of real estate buyers and voluntary ;

General provisions 5) identification of the characteristics of supply and demand that affect the creation of value in a specific area of the market; 6 ) Development of a model structure that reflects the relationship between the characteristics that influence the price of the market area ( consider the effect of pricing factors ) ; 7 ) calibration of the model structure to determine , among other signs of contribution of individual property characteristics affecting the cost ; 8 ) the use of the conclusions derived from the model to the characteristics of the estimated real estate;

General provisions 9 ) check accepted mass appraisal process , namely the model; measurements or other variables , including performance indicators, - based on the current values and / or discrete stages throughout the process; 10 ) Consideration and approval of the results of the cadastral value determined using mass appraisal techniques ;

The following terms and definitions are used in this standard: 1) calibration - the process of analyzing samples of objects of property and market data to determine the specific parameters taken into account in the model; 2) mass appraisal - the practice of evaluating a set of objects of a given date by systematic and uniform application of valuation techniques that include statistical research and analysis; 3) The mass appraisal process - the process of determining the cost estimate by grouping objects with similar characteristics, within which uses mathematical modeling and other methods to value -based approaches to evaluation.

Relationship with Financial Reporting Standards The definition of cadastral values using mass appraisal is not regulated by national or international financial reporting standards but not related to the procedures for determining the cost of inventory for tax purposes.

Requirements to the determining cadastral value. 1. Determination of the date of formation of the list of properties 2. The choice of approaches methods and models to determine the value of the land is the evaluator and must be justified. Performed using a computer simulation or without it. 3. It does not include views of the rights and restrictions on the evaluation objects except for easements. 4. To collect sufficient and reliable market information on real estate appraiser. 5. The assessment of market value in the event of insufficient market information.

Requirements to the determining cadastral value 6. Gathering information about the importance of pricing factors. 7. The use of the data included in the fund of the state cadastral valuation , as well as the state cadastral of real estate fund of the land documents , databanks and databases. 8. Justification of the choice of indicators , the values for the Assignment of evaluation in the relevant groups (based on the analysis of information about the market valuation objects , the composition of the pricing factors ). 9. The ban on the inclusion of uncompleted objects in the same group with the completed objects.

Requirements to the determining cadastral value 10. Selection of valuation models ( the use of any assessment approaches : cost , comparative and income ) , which includes the following steps: 1) Select the structure of pricing models 2) Selection of the final form of assessment models. 11. Raschet the cadastral value of the property assessment is carried out mainly on the basis of a comparative approach. 12. In the application of the methods of mass appraisal cadastral value of the object is determined by substituting the estimates of values of pricing factors.

Requirements to the determining cadastral value 13. If the appraiser used more than one approach to the assessment , the results of the use of approaches should be coordinated in order to determine the final value of the property valuation. 14. The appraiser must analyze and address the causes of differences if the difference is more than 30 %. 15. The selected appraiser matching method , as well as all the appraiser made in the implementation of harmonization of the results of judgment , assumptions and information used must be justified.

Cadastral value evaluation report The evaluation report prepared by the cadastral value in writing in accordance with the rules of business and professional ethics of the Republic of Kazakhstan appraisers, valuation standards' requirements for the form and content of the evaluation report "and the requirements set out below.

Cadastral value evaluation report In addition to the reporting requirements of the assessment are specified in the standard of evaluation "Requirements for the form and content of the evaluation report", the report of the evaluation of the cadastral value of the following additional requirements on the disclosure of data: 1) the customer and other intended users; 2) any extraordinary assumptions and hypothetical conditions, if they are reasonable and will lead to a credible result. Report on the cadastral value has to be made not later than seven months from the date of signing the Agreement for the inventory estimate

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