RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of October 16, 2025 No. 673

About approval of the standards of assessment of property obligatory to application by appraisers and the estimative organizations in the Kyrgyz Republic

For the purpose of further development of estimative activities in the Kyrgyz Republic, according to article 11 of the Law of the Kyrgyz Republic "About estimative activities", articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve:

1) the standard of the basic concepts and valuation principles according to appendix 1;

2) the standard of business valuation according to appendix 2;

3) the standard of real estate appraisal according to appendix 3;

4) the standard of requirements to content and report layout about assessment according to appendix 4;

5) the standard of assessment of intangible assets and intellectual property items according to appendix 5;

6) the standard of assessment of personal estate according to appendix 6;

7) the standard of assessment of natural resources and subsoil according to appendix 7.

2. Determine that the standards of assessment of property specified in Item 1 of this resolution are obligatory to application by appraisers and the estimative organizations in the Kyrgyz Republic.

3. Recognize invalid:

1) the order of the Government of the Kyrgyz Republic "About approval of the standards of assessment of property obligatory to application by all subjects of estimative activities in the Kyrgyz Republic" of April 3, 2006 No. 217;

2) the order of the Government of the Kyrgyz Republic "About entering of amendments into the order of the Government of the Kyrgyz Republic "About approval of the standards of assessment of property obligatory to application by all subjects of estimative activities in the Kyrgyz Republic" of April 3, 2006 No. 217" of October 28, 2014 No. 619;

3) the order of the Government of the Kyrgyz Republic "About modification and amendments in the order of the Government of the Kyrgyz Republic "About approval of the standards of assessment of property obligatory to application by all subjects of estimative activities in the Kyrgyz Republic" of April 3, 2006 No. 217" of November 15, 2016 No. 593.

4. This resolution becomes effective after fifteen days from the date of official publication.

Appendix 1

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of October 16, 2025 No. 673

Standard of the basic concepts and valuation principles

Chapter 1. General provisions

1. This standard determines concepts, the principles, terminology in the field of property assessment, methodology and procedure for evaluating.

2. Standards of assessment are obligatory to application by subjects of estimative activities in the Kyrgyz Republic in case of determination of cost type, object of assessment, approaches to assessment and evaluation methods, and also when evaluating property value of all patterns of ownership.

3. Subjects of estimative activities are physical persons and legal entities, state bodies and local government bodies within the powers conferred to them, consumers of services (customers).

4. Provisions of this standard are used in other standards in the value established by this standard.

5. Terms and determinations. In this standard terms and determinations in the value given in other regulatory legal acts in the field of estimative activities are also used.

Assets - the resources which are in someone's property or under someone's management from which in the future expect receipt of economic benefits.

Business - the type of business and economic activity permitted by the legislation of any Kyrgyz Republic, revenue-producing or other benefits.

Date of assessment - date (number, month, year) for which assessment of property is carried out and its cost is determined.

Personal estate - the objects which are not connected with the earth, not attached to it as stationary objects which allow possibility of movement without loss of essential properties: machines, the equipment, goods, money, securities, debt obligations and so forth, or capable to move: vehicles, animal and so forth. Carry property in material form to personal estate and the rights to it which is not the real estate.

Cash flow - receipt (increase) and expenditure (reduction) of money and their equivalents.

Discounting of cash flow - transfer of values of future cash flows to their current value, proceeding from the expected value of rate of discount.

Income approach - approach to assessment according to which the property value is determined as the current value of property equal to present value of the expected future income from its use and/or sale, taking into account structure, the income, terms and risks.

The contract for evaluating property - the mutual agreement between the customer and the appraiser (the estimative organization) on rendering services, according to property.

The task for assessment - the written instrument which is constituted in case of need / in coordination with the customer and is appendix to the contract for evaluating, containing necessary requirements and information for cost determination of property and being the certificate of unambiguous understanding the parties of content of results of the forthcoming work.

Cost approach - approach to value assessment of property according to which the property value consists of purchase costs and/or reconstruction of all components, taking into account all types of depreciation.

Costs - money value of cost of material, labor, financial, natural, information and other types of the resources used in the course of economic activity for certain period of time.

Identification of object of assessment - comparison of the actual physical and functional characteristics of property and property rights for establishment of compliance of the data containing in documentation on assessment object.

Excessive property - property which is not used in economic activity of the company and which maximum value is reached owing to alienation.

Depreciation (impairment) - loss of property value concerning the cost of its reproduction.

Property - the concept applied to designation:

1) sets of the things and material values consisting in property of person (physical and legal), the state or local community, or belonging to the organization on the right of economic maintaining or operational management. Also money, securities and intangible assets are part of property;

2) sets of things and property rights on receipt of things or property satisfaction from other persons (asset);

3) sets of things, property rights and obligations which characterize property status of their carrier (asset and liability).

Capitalization - determination of current value of object of assessment based on the income from its use expected in the future. Capitalization can be performed using capitalization rate (direct capitalization) or discount rates (discounting).

Earnings capitalization - transfer of the income, expected in the future permanent in size, to current value using capitalization rate.

Salvage value - the cost which can be received in case of assessment object sales term in time, being well than the term of exposition of similar property during which it can be sold on market value.

Evaluation method - method of cost determination of object of assessment which sequence of accomplishment of estimative procedures gives the chance to implement certain approach to assessment.

Real estate (real estate) - the parcels of land, subsoil plots, the isolated water objects and everything that is connected with the earth, that is objects which movement without disproportionate damage to their appointment is impossible, including the woods, long-term plantings, buildings, constructions, etc.

Intangible assets - objects of non-material property (such as the patent, the license, trademark, capability to get profit, copyright or the usage agreement of name and the trademark of firm owner, firm distributor of goods and services, the computer software and others), which can be used in economic activity within at least one year and are subject to depreciation.

Assessment object - property which is required to be estimated.

Assessment is low-quality, doubtful - assessment which is carried out with violation of the principles, approaches, methods, the estimative procedures provided by standards of assessment.

Similar property - property which according to the characteristics and (or) properties as much as possible corresponds to object of assessment and has the same investment appeal.

Approaches to assessment - general methods of cost determination of property which are based on the basic principles of assessment.

The property right - the subject's right recognized and protected by the legislation to own, use and dispose at discretion of the property belonging to it.

Process of assessment - certain sequence of the procedures used for establishment of the size of project cost of assessment. Process of assessment includes set of methods of collection and data analysis, carrying out calculations and registration of results in the valuation report giving evidential force to value assessment.

Reviewing - set of the actions which are carried out by the reviewer appraiser for the customer on establishment of compliance of the checked valuation report to the requirements established by the legislation of the Kyrgyz Republic.

The market - system in which goods and services pass from sellers to buyers by means of the price mechanism. The concept of the market implies capability of goods and/or services to pass from hand to hand without restrictions of activities of sellers and buyers.

The market rent - settlement sum of money for which the property would be leased for date of assessment in the commercial transaction on lease on proper conditions between the interested lessor and the interested lessee after proper marketing, in which each party would be effective being knowledgeable, it is prudent also without coercion.

The specialized property - property which with demand for it (if at all) is on sale and only as component of any business, or property with the limited market, or not having the market depending on location, extent of specialization of design, configuration or appointment such property has characteristics which do it more attractive to the special (specific) buyer, than for any other buyer in the market. The corresponding characteristics of property can be both physical, and geographical, economic or legal characteristics.

Comparative approach - approach to assessment according to which the property value is determined at the price level of similar objects taking into account the corresponding adjustment of differences between them.

Discount rate - the interest rate used for recalculation of future cash flows in the single size of current value.

Capitalization rate - interest rate which is applied to cost determination of object proceeding from the expected income from its use provided that the income is supposed invariable or permanent throughout certain period in the future.

Current value - the cost of future income (cash flows) specified to date of assessment.

Losses - or will shall make expenses which person whose right is violated, made for recovery of the violated right, and also the uncollected income which this person would gain in case of usual conditions of civil circulation if its right was not violated (lost profit).

Financial instruments - any contract of which emergence of certain Article in asset - one contract party and Article in liability - other contract party is result.

The price - the actual amount of money required, offered or paid for object of assessment or similar property.

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