What Is an Alternate Valuation Date?

After the statutory asset appraisal agency accepts the client's entrusted appraisal task, it determines the fair value of the entrusted appraisal object on a certain day. The value of the valuation object at the time point determined by the evaluation, this time point is the evaluation reference date, accurate to a certain day, month, and day.

Evaluation Base Date

Right!

After the statutory asset evaluation agency accepts the client's entrusted evaluation task, it determines the

Selection of evaluation base date:

(1) The base date selected for the transfer evaluation must be within the validity period of the equity; the base date selected should be no less than 2 months from the evaluation work period; the base date should in principle be selected at the end of the year and the end of the month.

(2)

The price of an asset changes over time, and different valuation dates will produce different valuation results. Asset evaluation serves specific economic behaviors. The selected evaluation benchmark date should be conducive to the evaluation results effectively serving the purpose of evaluation and avoid unnecessary losses to the parties due to improper selection of the evaluation benchmark date. Therefore, the choice of when to use as the base date for evaluation depends on the specific purpose of the evaluation. Generally speaking, the market conditions and price standards of the reference date are always used in the evaluation, but the status of the assets may not always be the status of the evaluation date, which is also determined by the evaluation purpose. Therefore, in the actual operation, it should be combined with the evaluation purpose to reasonably determine the evaluation base date and the corresponding asset status so as to correctly reflect the evaluation value corresponding to the evaluation purpose. When selecting the evaluation base date and determining the asset status, due to different evaluation purposes, there are usually the following situations:

1. When the purpose of the evaluation is economic situations such as asset transfer, investment, restructuring, liquidation, and economic evaluation, the evaluation base date is generally selected, that is, the day when the evaluation purpose is realized, or no more than one year before. The asset status and market conditions on which the assessment is based are common on the assessment base date.

2. When the evaluation purpose is to re-evaluate for the purpose of resolving legal disputes or arbitrating the evaluation results of other evaluation agencies, the evaluation base date is generally a certain point in the past, and the status of the assets being evaluated and market conditions are also the evaluation base date )status. For example, in joint venture disputes, it is often necessary to determine the value of the assets invested by the two parties in the joint venture in order to calculate the investment proportion. At this time, the benchmark date for evaluation is usually the date of signing the joint venture contract.

3. When the purpose of evaluation is to determine the value of assets in the past, the evaluation reference date is generally selected as a certain point in time. At this time, the state of the asset is the past, the market situation, and the assessment purpose in this case is the assessment of the amount of fire damage.

4. When the purpose of evaluation is to determine the value of the asset under evaluation in the future, such as the evaluation of futures, the evaluation base date is the same as the market situation and the asset status is future. As pre-sale of real estate is more common, there will be more and more evaluation projects in this case.

5. When the purpose of the evaluation is to determine the future market value of an asset (which may be spot, or under construction, or even planning and design only), the evaluation base date, asset status, and market conditions are all future The economic situation in this case generally includes asset value prediction, project evaluation, feasibility study and investment decision.

Theoretically, the assessment for the purpose of mortgage loans also belongs to this category. The value of the assessed collateral should be the realizable value of the collateral at the time when the future debt matures, that is, the expected value of the collateral. It can be seen from the several cases listed above that the market conditions involved in the asset evaluation in each case are the market conditions at the time of the evaluation base date, and the laws, regulations and price standards adopted in the evaluation are all It should be valid on the valuation base date, and the status of the assets may be different for different purposes.

Third, the evaluation base date, the date of the evaluation and the date of the evaluation report

The evaluation base date is not the date when the appraiser's actual site survey, appraisal, and assessment estimates are made. The evaluation base date can be selected as required other than the survey date. However, the farther the assessment base date is from the survey date, the more likely it is that the influencing factors of asset value will change, the more uncertain factors are in the assessment, and the more difficult the assessment will be. Therefore, on the premise that the purpose of the assessment is met, the assessment base date should be chosen as close to the survey date as possible to minimize the judgment and guesswork in the assessment, and mainly rely on the first-hand information held by the assessor's field survey and market survey. To determine valuation value.

The date when the evaluation report is submitted is the date when the evaluation report is signed. What day is it? There is no specific stipulation in the current evaluation regulations. It is generally considered that it should be the date when the assessor completes the field survey and appraisal work, not the evaluation base date, let alone The date the evaluation report was printed and bound.

The evaluation base date and the date when the evaluation report is presented are two very important points involved in asset evaluation. They are both the basis for defining the scope of the evaluation responsibility, and the evaluation base date is also an important basis for determining the validity period of the evaluation results. Scientifically and reasonably determining the evaluation benchmark date will help to objectively and truthfully reflect the fair value of the assets for a specific evaluation purpose, effectively protect the legitimate rights and interests of all parties, reduce adjustments after the benchmark date, and clarify the legal responsibility of the appraiser. Therefore, this issue should be taken seriously in the assessment.

Transferred from "Experts", published in "China Assets Appraisal" 2000.3