RESOLUTION OF THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN ON MANAGEMENT OF THE STATE-OWNED PROPERTY

of June 14, 2006 No. 01/19-20

About approval of the National standard of the Republic of Uzbekistan of assessment of property "Market value as measurement base"

According to the Law of the Republic of Uzbekistan "About estimative activities", the resolution of the President of the Republic of Uzbekistan of April 26, 2006 NPP-335 "About Measures for Enhancement of Activities of the State Property Committee of the Republic of Uzbekistan" and the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of May 8, 2003 the State committee of the Republic of Uzbekistan on management of state-owned property decides N210 "About Licensing of Estimative Activities":

1. Approve the National standard of the Republic of Uzbekistan of property assessment "Market value as measurement base" according to appendix.

2. This resolution becomes effective after ten days from the moment of its state registration in the Ministry of Justice of the Republic of Uzbekistan.

Approved by the resolution of the State committee of the Republic of Uzbekistan on management of state-owned property of June 14, 2006 No. 01/19-20

National standard of the Republic of Uzbekistan of property assessment (NSOI 2). "Market value as assessment meringue"

This National standard of assessment of property "Market value as measurement base" (Further - NSOI N2) is developed on the basis of the Law of the Republic of Uzbekistan "About estimative activities" and is element of normative regulation of estimative activities in the Republic of Uzbekistan.

NSOI N2 should be considered in the context of the general provisions and instructions for application containing in NSOI N1.

1. Introduction

Purpose of NSOI N2 - to provide the commonly accepted determination of market value. It also explains the general criterions connected with this determination and its application in case of property assessment when the purpose and function of assessment consist in calculation of market value.

Market value represents cost in exchange or sum of money which would be brought by the property offered for sale in the public market for date of assessment under conditions which meet the requirements containing in determination of market value. To establish market value, the Appraiser shall establish the most effective use or the most probable use in the beginning. Such use can be continuation of the existing use or some alternative to it. This question is resolved on the basis of data of the market.

Market value is established by application of the methods and assessment procedures reflecting nature of property and circumstance in case of which this property with the greatest probability can be sold in the public market. The method of comparison of sales, capitalization method of the income or method of the discounted cash flow, and also costly method belong to the most widespread methods of establishment of market value.

Two options of application of costly method, one of which can be used for establishment of market value, are possible, and another - is not present. When the costly method is applied to establishment of market value, all elements of method are under construction on data of the public market. If the costly method is applied to cases of non-market cost types, then non-market elements undertake. Specific place is held by method of costs for replacement taking into account depreciation (ZZUI) in which market and non-market elements are combined and which cannot be considered as evaluation method of market value. These various cases of cost approaches cannot be mixed, and there is danger of their wrong treatment in case of determination, representation or use of values of market value.

All methods, methods and procedures of measurement of market value if they are applicable, are used correctly and are based on the criteria having market origin lead to general expression of market value. The method of comparison of sales or other methods of market comparisons shall proceed from market researches. Construction costs and the amount of depreciation shall be determined on the basis of the analysis of market cost data and the depreciation amount. The capitalization method of the income or method of the discounted cash flow shall be based on the cash flows determined from market line items and the rates of the income based on data of the market. Though possibilities of receipt of information, and also situation in the market and around the object of property will determine what of evaluation methods most we accept and is adequate, use of any of the above-stated procedures shall lead to establishment of market value if each of methods is based on market data.

Applicability of these or those methods and procedures of establishment of market value is determined proceeding from method what the property usually is on sale in the public market. Being based on market information, each method is comparative method. In each case of assessment one or several methods give the most complete idea of activities of the public market. In case of each task by determination of market value the Appraiser shall consider all methods and determine the most suitable of them.

2. Scope of application

NSOI N2 is applied to market value of property. He requires that the estimated object of property was considered as if it was offered for sale in the public market, unlike situation when it is estimated as part of operating plant or for any other purpose.

3. Determinations

Market value for the purposes of NSOI N2 is determined as follows:

market value is settlement sum of money for which sale of asset for date of assessment by the interested seller to the interested buyer as a result of the commercial transaction after carrying out proper marketing in case of which each of the parties would have sufficient information would take place, was effective prudently and without coercion.

The term "asset" is used because assets are in the center of attention of NSOI N2. However for use of this determination generally it can be replaced with the term "property". Each element of this determination has own conceptual framework:

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