of November 29, 2006 No. 1655
About approval of the National standard No. 3 "Assessment of complete property complexes"
According to article 9 of the Law of Ukraine "About assessment of property, property rights and professional estimative activity in Ukraine" the Cabinet of Ministers of Ukraine decides:
Approve the National N3 "Assessment of Complete Property Complexes" standard which is attached.
Prime Minister of Ukraine V. Yanukovych
Approved by the resolution of the Cabinet of Ministers of Ukraine of November 29, 2006, No. 1655
1. The national N3 standard (further - the Standard) is obligatory for application during evaluating complete property complex of the subject of housekeeping (further - complete property complex) subjects of estimative activities, and also persons which according to the legislation perform reviewing of valuation reports of complete property complex.
2. In this Standard the terms below are used in the following value:
the invested capital - the amount of own and borrowed capital (long-term debt) of complete property complex;
capital investments - investments which go to construction, production, reconstruction, upgrade, acquisition, creation of non-current assets (including the non-current tangible assets intended for replacement acting, and the equipment for installation implementation), and also advance payments for financing of capital construction;
corporate share - share (share, shares) of economic society which is formed based on complete property complex;
the animator - coefficient which is calculated by division of selling price (offer) of similar complete property complex or market capitalization of joint-stock company which complete property complex is considered as similar to the estimated complete property complex, on the corresponding financial and economic or other indicator which characterizes its activities;
nominal cash flow - cash flow in the forecast prices of future periods taking into account the forecast rate of inflation;
nominal rate of discount - discount rate which is applied to determination of current value of nominal cash flow;
the working capital - the cost of current assets of complete property complex which is reduced by the size of its short-term (current) obligations;
real cash flow - cash flow in the prices fixed for date of assessment without the forecast rate of inflation;
real rate of discount - discount rate which is applied to determination of current value of real cash flow.
Other terms are used in the value given in national standards of assessment of property (further - national standards) and in other regulatory legal acts concerning assessment.
3. The choice of measurement base of complete property complexes is performed according to the requirements established by the National N1 standard.
4. By regulatory legal acts concerning assessment of property features of application and procedure for determination of estimated value of complete property complex can be established.
5. Application of methodical approaches and reasons for the conclusion about the cost of complete property complex are performed taking into account the requirements established by the National N1 standard and this Standard.
6. For the purpose of evaluating complete property complex it is necessary to perform:
the analysis of form of business of the company which complete property complex is estimated;
acquaintance and market research of products (goods, works, services) of complete property complex in the amount sufficient for forming of idea of amount and segmentation of such market, the current part of the market of products (goods, works, services) of complete property complex, the prospects of activities of the company which complete property complex is estimated, in the corresponding market for assessment of correctness of the assumptions made during preparation of the forecast of activities of the estimated complete property complex;
acquaintance and market research of raw materials and the main materials which are used in activities of the company which complete property complex is estimated in case when the assumption concerning the prospects of market development of raw materials and the main materials is component of the forecast of activities of such property complex;
the analysis of the legal basis of implementation of economic activity of the company which complete property complex is estimated, in particular licensing, quoting, use of mechanisms of pricing in the market of the corresponding products (goods, works, services), availability of the state support or restrictions, anti-monopoly and ecological requirements, system of the taxation;
the analysis of its financial and economic activities, property and financial condition for date of assessment and for the period which precedes this date;
preparation proved the forecast of activities of the company which complete property complex is estimated, for the main indicators of production and sales of products, financial and property condition and the forecast of requirement of such company for investments with determination of sources of financing.
The received decisions by results of the carried-out analyses undertake in basis of assumptions which are used during evaluating.
7. The following main methodical approaches are applied to evaluating complete property complex:
Features of application of property approach
8. Property approach is applied to determination of market value of complete property complex in case noted approach reflects standard logic of potential buyers which is based on common practice, in particular during assessment of complete property complex which market value is determined by current value of probable result of liquidation of noted property complex.
9. The main method of property approach to assessment of complete property complex is the method of accumulating of assets. The method of current value of probable result of liquidation of complete property complex, and also other methods of property approach which feasibility of application in specific situation needs to be proved can be applied by appraisers.
10. The method of accumulating of assets consists in determination of net value of assets of complete property complex. Net value of assets of complete property complex is determined as difference between asset cost and cost of its obligations determined for date of assessment according to requirements of Item 11 of this Standard.
11. Assessment of assets and liabilities for date of assessment is carried out taking into account the following features:
non-current assets regarding fixed assets, intangible assets, construction in progress, long-term financial investments are estimated with use of measurement base which answers market value or non-market cost types which choice and determinations are performed according to requirements of national standards;
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