The terms used in the appraisal process are those defined in the Ukrainian National Standard No. 1 “General Principles and Bases of Appraisal”; these definitions are consistent with IVS-2020:
Market value – the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
The term of the exposure – the period during which the object of valuation can be put up for sale on the market in order to secure its sales at the highest price and the duration of which depends on the demand and offerings for similar property, number of potential buyers, their purchasing power and other factors.
A similar agreement – a civil agreement, the subject of which is a similar property and which has common features with the agreement for which the valuation is carried out;
Functional analogue – an asset, which according to its functional (consumer) characteristics can be recognized as similar property to the object of valuation.
Basis of value – a statement of the fundamental measurement assumptions of a valuation.
Methodological approaches – common ways to determine the value of the property based on the basic principles of valuation.
Valuation method – a method for determining the value of an object of valuation, the sequence of valuation procedures that allows you to implement a certain methodological approach.
Valuation procedures – actions (stages), the execution of which makes it possible to conduct a valuation
Valuation objects – property and property rights that are subject to valuation.
Similar property – a property that, by its characteristics and (or) properties, is similar to an object of valuation and has the same investment attractiveness.
Valuation date – the date on which the opinion of value applies. The valuation date shall also include the time at which it applies if the value of the type of asset can change materially in the course of a single day.
Output data – documents that contain the characteristics of the object of valuation.
The object of comparison – a similar property that is selected to apply a comparative approach.