Probably many of you mistakenly think that the two valuation and valuation activities are the same, but in fact these two activities are different.
1. According to the 2007 Short-term Knowledge Training Fact Sheet - Department of Price Management - Ministry of Finance issued 4 features to distinguish the difference between valuation and price appraisal:
First: Nature, purpose of valuation and valuation
- Valuation is the assessment of the value of assets appropriate to the market at a location, a certain time and price appraisal is the evaluation or reevaluation of the value of assets in accordance with the market. at a location, certain times according to Vietnamese standards or international practices.
- Price determination of specific forms, standard price frame, limit price (minimum and maximum price); Valuation only uniquely identifies an asset price in a location and a certain time according to the valuation criteria offered is primarily advisory.
- Valuation of assets to bring assets into circulation in the market economy, on that basis to promote market development. Valuation assesses or re-evaluates the value of the property to advise valuation requesters on certain purposes stated in the appraisal certificate.
Second: Principle
- Asset valuation must ensure rules
+ Asset valuation must ensure the principle: Asset valuation must be based on technical standards, nature, location, scale, real situation of assets and market prices at the time of valuation.
+ Asset valuation must be independent, objective, honest and compliant with the law.
- Valuation according to the principle
+ Complying with Vietnamese law and valuation standards
+ Be responsible before the law for professional activities and price appraisal results
+ Ensure independence of professional expertise and honesty and objectivity of valuation activities.
+ Securing the information of the price-appraised unit, unless agreed upon by the valuation unit or otherwise provided for by law.
Third: Valuation and valuation methods
- Valuation according to basic methods such as direct comparison method; income method ...
- Valuation according to basic methods such as comparison method, cost method, income method, profit method, surplus method
