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

of October 6, 2009 No. 01/19-18/19

About approval of the National standard of assessment of property of the Republic of Uzbekistan (NSOI No. 9) "Business value assessment"

According to the Law of the Republic of Uzbekistan "About estimative activities", Resolutions of the President of the Republic of Uzbekistan of April 26, 2006 "About measures for enhancement of activities of the State Property Committee of the Republic of Uzbekistan" and of April 24, 2008 No. PP-843 "About further enhancement of activities of the estimative organizations and increase in their responsibility for quality of the rendered services" the State committee of the Republic of Uzbekistan on management of state-owned property decides No. PP-335:

1. Approve the National standard of assessment of property of the Republic of Uzbekistan "Business value assessment" according to appendix.

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

Appendix

to the Resolution of the State Property Committee of the Republic of Uzbekistan of October 6, 2009 No. 01/19-18/19

National standard of assessment of property of the Republic of Uzbekistan (NSOI No. 9) "Business value assessment"

This National standard of assessment of property (NSOI No. 9) according to the Law of the Republic of Uzbekistan "About estimative activities" (Sheets of Oliy Majlis of the Republic of Uzbekistan, 1999, No. 9, the Art. 208), the resolution of the President of the Republic of Uzbekistan of April 24, 2008 No. PP-843 "About further enhancement of activities of the estimative organizations and increase in their responsibility for quality of the rendered services" (The collection of the legislation of the Republic of Uzbekistan, 2008, No. 18, of the Art. 145) determines normative regulation of estimative activities in the Republic of Uzbekistan.

Chapter I. General provisions

1. The purpose of NSOI No. 9 is setting standards and edited on value assessment of business, determining terms and determinations, requirements to information, procedure for evaluating, approaches and evaluation methods, requirements to registration of results of assessment.

2. In NSOI No. 9 the following terms and determinations are used:

cash flow - the cash flow created during the period of time by asset, group of assets, the company;

cash flow on the invested capital (debt-free cash flow) - the cash flow paid to shareholders and investors after financing of activities of the company and implementation of necessary capital investments;

cash flow on equity (debt cash flow) the cash flow directed to shareholders, remaining after financing of activities of the company, implementation of capital investments and change of amounts of debt financing;

assumptions - the assumptions which are considered true. Assumptions contain the facts, conditions or situations influencing object of assessment or approaches to assessment which check and confirmation are impossible;

the closed company - the company which does not have shares or shares of which are not sold in the public market and the number of participants is limited to the legislation;

control - opportunity to influence management and policy of the company;

control share - the share in property (authorized capital of the company) providing to its owner control of activities of the company;

the animator - the coefficient showing ratio between the price or other cost basis of the company and the financial, production or material indicator characterizing its activities;

restrictive conditions - the restrictions imposed on assessment by the legislation, the customer or the appraiser;

the open company - the company which shares are sold in the public market and the number of participants is not limited to the legislation.

discount rate - the return rate used for transformation of future cash receipts to current value;

capitalization rate - divider, as a rule, expressed in percentage terms, used for transformation of size of the income for certain period in cost;

current value - the cost of future income specified for certain date with use of the corresponding discount rate.

Chapter II. Scope

3. In NSOI No. 9 business (company) is understood as the commercial organization performing business activity.

4. Assessment objects to which action of NSOI N 9, extends are:

business (company);

ownership ratios in business.

5. NSOI No. 9 is intended for the estimative organizations, appraisers, customers of estimative services and is subject to obligatory application when rendering services in value assessment of business (company) or ownership ratio in business and check of reliability of valuation reports of cost of business or ownership ratio in business.

In case the stocks (shares) and stocks (shares) of the same company which are not owned by the state which are at the same time owned by the state are subject to assessment, then in this case assessment is performed according to requirements of the National standard of assessment of property of the Republic of Uzbekistan (NSOI No. 8) "Property value assessment for the purpose of privatization" (reg. No. 2025 of October 28, 2009).

6. NSOI No. 9 is not applied in case of assessment of the company (ownership ratio in the company) for the purpose of privatization, and also when checking reliability of valuation reports of the company (ownership ratio in the company) for the purpose of privatization.

7. In case of application of NSOI No. 9 it is necessary to be guided by the Methodical instructions given in appendix to this NSOI No. 9.

Chapter III. Interrelation with accounting standards

8. Accounting data and the financial reporting are the main source of information in case of cost determination of business and are capable to have significant effect on the choice of estimative procedures, approaches and evaluation methods, and also on conclusion about total cost.

9. Distinctions for the purpose of, pursued by national accounting standards and national standards of assessment of property, expressed in conceptual framework, various methods of cost determination and accounting of assets cause need of carrying out adjustments of accounting data and the financial reporting for their subsequent use in case of business cost determination.

10. The terms of financial accounting used by the appraiser, shall be opened by it in the valuation report.

Chapter IV. Requirements of the standard

11. The value assessment of business (company) consists of the following stages: determination of task for assessment and conclusion of the agreement on assessment object assessment;

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