NEWS & BLOGS EXCLUCIVELY FOR INFORMATION TO ENGINEERS & VALUERS COMMUNITY
BALANCE SHEET METHODS OF VALUATION These methods of valuation are most often employed when the business under examination generates most of its earnings from its assets rather than from the contributions of its employees. These methods are also used, “when the cost of starting a business and getting revenues past the break-even point doesn’t greatly […]
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INCOME STATEMENT METHODS OF VALUATION Valuation is the process of putting a price on a piece of property. The value of businesses, personal property, intellectual property (such as patents, trademarks, and copyrights), and real estate are all commonly determined through the practice of valuation. Businesses are valued for many tax, legal, and business reasons but
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FORENSIC AUDIT –ALL YOU NEED TO KNOW A forensic audit is an analysis and review of the financial records of a company or person to extract facts, which can be used in a court of law. Forensic auditing is a speciality in the accounting industry, and most major accounting firms have a department forensic auditing. Forensic audits include the experience in accounting
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DIFFERENCE BETWEEN DISSOLUTION OF PARTNERSHIP AND DISSOLUTION OF FIRM Definition of Dissolution of Partnership Partnership implies the abstract legal relation that exists between the partners. Dissolution of Partnership is, therefore, the termination of the relation between the partners. This may take place due to the retirement or incapacity of a partner due to insanity, death
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DIFFERENCE BETWEEN EXPLICIT COST AND IMPLICIT COST Definition of Explicit Cost It refers to the expenditure incurred by the producer to buy the inputs from the market. For example, the purchase of raw materials, labor from the market, etc. It can be measured as the cash payments that a firm makes to others for the
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PROJECT AFFECTED PERSON (PAP)-ALL YOU NEED TO KNOW Project affected person (PAP) means the people directly affected by land acquisition for a community project through loss of part or all of their assets whether temporarily or permanently including land, houses, other structures, businesses, crops/trees or other types of assets Categories of PAP 1) Directly affected
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III. Asset-class wise sample of disclaimers The Rules provide for three asset classes of land and building, plant and machinery and securities or financial assets. In this section, a few sample disclaimers have been provided for each asset class. A. Land and Building i. I/We have not verified the title deeds of the properties with
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3.5 Illustrative Limitations in a Valuation Report specific to Tangible Assets i. Title deeds of properties We have not verified the title deeds of the properties with the records of registrar’s office as this is beyond the agreed scope of our services stated in our engagement letter. ii. Legal and other issues Our valuation is
3.4 Illustrative Caveats, Limitations and Disclaimers in a Valuation Report An illustrative list, which is common for all type of asset, is provided below: i. Restriction on use of Valuation Report This document has been prepared for the purposes stated herein and should not be relied upon for any other purpose. Our client is the
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3.2 Procedures involved in the preparation of a valuation report i. The procedures adopted in carrying out a valuation may vary with circumstances, nature and purpose of valuation as well as information and time available. The principal procedures adopted by the RV in carrying out the valuation should be set out briefly in the report.
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3.1 Contents of a Valuation Report Considering the interests of stakeholders and the need for transparency and principles of good corporate governance, the under noted matters should compulsorily be covered in the Valuation Report, in a clear, unambiguous and non-misleading manner, consistent with the need to maintain confidentiality: Understanding the Guidelines on Use of Limitations,
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II. Guidance Note on Limitations, Caveats and Disclaimers 1. In general, valuation is required in the context of the following: a) consummation of certain transactions like acquisition, disposal, merger, amalgamation; b) internal decision making/Corporate Governance; c) regulatory Compliance: Companies Act, SEBI Regulations, Income Tax, Wealth Tax, FEMA, etc.; d) fund Mobilisation – both equity and
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