The word “valuation” has a very broad meaning. Literally it means opinion on the value of something. In our case it means defining the value of an object as of a specific date and for a specific purpose.
Valuation means a set of activities aimed at estimating the value of the object resulting in the valuer’s reasoned report on the value of the object as of the date of valuation.
Buildings and facilities, land, equipment, vehicles, intangible assets, enterprises as operating businesses and other assets can be appraisal objects.
Need for valuation arises for carrying out the following functions:
- property investment in a legal person’ charter capital,
- alienation of property,
- revaluation of fixed assets,
- estimating the value of an enterprise, organization,
- reorganization or liquidation of legal persons,
- strategic planning,
- property insurance,
- accounting of organizations,
- transfer of property to trust management,
- mortgage loan,
- state- or community-owned immovable property acquisition, except for privatization of state property and state- or community-owned land acquisition,
- immovable property acquisition (taking immovable property) for state or municipal needs,
- investing property in funds,
- sale as a result of confiscation,
- entering into tenancy or lease agreements,
- investment planning,
- write-off of fixed assets when their future use is impossible or unreasonable,
and in many other cases.