Objectives For The Valuation Of The Property

In order to receive a loan, an enterprise voluntarily agrees with the terms of the mandatory valuation of the property, both for the collateral of the loan and for the maximum amount of credit that the business entity can count on.

The criterion for attributing the costs of the assessment to the deductions of the relevant tax period is the efficiency of its implementation, both in a voluntary and compulsory form, since the evaluation results in an inflow of economic benefits. Therefore, conducting a voluntary or mandatory appraisal of property does not mean the allocation of expenses in a voluntary appraisal only for financial purposes, but in the case of a compulsory appraisal – as deductions.

In case of voluntary evaluation, there is no direct obligatory dependence of its conduct on the other side (external factor), the company independently decides on the purpose and necessity of evaluation, which may later affect external factors (property buyers, tenants, etc.) to obtain income as an inflow of economic benefits.

The company may pursue the following objectives for the valuation of the property:

Determination of the market and liquidation value of the property in the current conditions for the sale and purchase;

Planning accounting for financial purposes, based on the estimated (revalued) value;

Determination of the value of the rent when renting the property, depending on its estimated market value;

Determination of market collateral valuation (value) in case of receiving the loan amount;

Conducting an independent assessment of the market value of the property for its recognition by foreign investors in accordance with the requirements of their investment projects when buying property (real estate) or investing funds in an enterprise, as a share, etc.

When evaluating a property by an appraisal company, the purpose of the appraisal is indicated. However, in practice, for various reasons, an enterprise may not always use the results of an appraisal or derive economic benefits from an appraisal in the tax period for its conduct.

At the same time, the results of this assessment may be necessary and applied in the tax period of its conduct for purposes other than originally indicated, without the need for a different (repeated) assessment.

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Thus, an enterprise has the right to use the results of the initial assessment at the time of its holding in the relevant tax period, and its results can be used for another purpose (other purposes) in a given tax period or go beyond the framework of this tax period.

Expenses related to property valuation in the part in which it was used for purposes other than the original, are deductible for the corresponding tax period. The use of the results of the initial assessment for purposes other than those specified in the initial assessment should be provided with specific goals and conditions of business activities, the economic advantage of using its results.

Consequently, if the valuation results are not used in the tax period in full, the expenses related to the valued assets that are not secured by the inflow of the economic benefit of the tax are charged to the expenses of future tax periods in proportion to the established base of their distribution: the market part of the property value, assessed, not participating in the inflow of economic benefits.

Example 1:

The appraisal company made an assessment of the property of the enterprise to provide collateral in obtaining a loan. The loan was issued to the enterprise under the provision of the estimated collateral in the tax period following the valuation period. Expenses on property valuation made in the tax year are charged to 251 “Expenses of future (future) periods (period)” and will be deductible in the tax period in which the company can receive a loan using the result of property valuation on bail.


The provision of the commented article establishes a requirement for the mandatory monetary valuation of property and liabilities by an organization. Under the assessment refers to the determination of the value of property values. The purpose of this assessment is their reflection in the accounting and financial statements in monetary terms.

In addition, in the commented paragraph defines the methods of property valuation.

Assessment of the property of an organization can be carried out as follows:

Property acquired by an organization for a fee is estimated by summing the actual expenses incurred for its purchase;

The property received by the organization free of charge is valued at the market value on the date of posting;

Property produced in the organization itself is valued at the cost of its manufacture.

According to paragraph. 8 of the Regulations on accounting when approving accounting policies, organizations are approved including the methods for evaluating certain types of property and liabilities. The specified regulatory act specifies the methods of property valuation in monetary terms for reflection in the accounting records and financial statements. Paragraph 23 of the accounting regulation states that the costs actually incurred include, inter alia, the cost of acquiring the property itself, interest paid on the commercial loan provided for the acquisition, markups (premiums), commissions (cost of services) paid procurement, foreign trade and other organizations, customs duties and other payments, the costs of transportation, storage and delivery, carried out by third parties.

The formation of the current market value is made on the basis of the price valid on the date of the posting of the property received free of charge for this or a similar type of property. Data on the current price must be documented or by expert.

Under the cost of manufacture are actually incurred costs associated with the use in the process of manufacturing the property of fixed assets, raw materials, materials, fuel, energy, labor and other costs for the manufacture of the property.

Thus, the commented provision of the Law provides for three ways to evaluate property, while indicating the possibility of using other methods (including by means of reservation) in cases provided for by the legislation of the Russian Federation.

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The procedure for assessing certain types of property is regulated in separate regulatory acts.

The rules for the formation in the accounting of information about the organization’s fixed assets (including their valuation) are set out in PBU 6/01.

The rules for the formation in accounting and financial statements of information on intangible assets of organizations that are legal entities under the laws of the Russian Federation are set out in PBU 14/2007.

The rules for evaluating financial investments, as well as the procedure for generating information on financial investments of an organization in accounting and financial statements, are fixed in PBU 19/02.

PBU 5/01 establishes the requirements and rules for the formation in the accounting information about the inventories of the organization. Section 2 “Assessment of inventories” PBU 5/01 provides for the regulation of the procedure for evaluating and reflecting in inventories accounting records.

In addition, it should be borne in mind that there is a specific property valuation for accounting purposes with respect to organizations engaged in certain professional activities. For example, such features of valuation (revaluation) of assets and liabilities are provided for in the annex to the Regulations on the Rules of Accounting in Credit Institutions located in the territory of the Russian Federation.

In accordance with the requirements of the commented clause of the Federal Law “On Accounting”, depreciation of fixed assets and intangible assets is not affected by the results of the organization’s economic activities in the reporting period.

For example, the procedure for depreciation of items related to fixed assets is provided for in Accounting Regulation 6/01. According to clause 17 of PBU 6/01, the value of fixed assets is redeemed through depreciation (unless otherwise specified in PBU 6/01). The depreciation of fixed assets is calculated in one of the following ways:

Assessment Of Land Plots

However, it is “unprofitable” to pay the state fee based on the market value of the object. The size of the state duty is large.

It is much more convenient to pay the state fee on the basis of the inventory value of the real estate object (apartment, house, room, etc.).

The inventory value refers to the replacement value of the object, taking into account depreciation and price growth for construction products, works and services (clause 3 of the Instruction of the RF Ministry of Taxes and Duties of 02.11.1999 No. 54 “On the application of the Law of the Russian Federation “On Personal Property Taxes”).

From January 1, 2013 in the state real estate cadaster there is no information about the inventory value of real estate objects.

However, information on the inventory value can be obtained from organizations carrying out technical inventory.

In each region and city they can be their own.

For example, in Yekaterinburg, most of the objects have been inventoried by EMUP “Bureau of Technical Inventory”, which currently issues certificates of registration of the object and its inventory value. For details, see the EMUP BTI website at this link.

Assessment of land plots when filing a claim on the division of property of spouses (except land)

Once again I will quote paragraph 9 of Part 1 of Art. 91 Code of Civil Procedure of the Russian Federation: for claims on the right of ownership of an immovable property owned by a citizen on the right of ownership, the price of a claim is determined based on the value of the object, but not lower than its inventory estimate or, in the absence thereof, not lower than the estimate of the value of the object under the insurance contract, on the object real estate owned by the organization – not lower than the balance sheet valuation of the object.

You can pay a state fee based on the market value of the land. But there is a better way.

In accordance with Part 2 of Art. 66 of the Land Code of the Russian Federation, in order to establish the cadastral value of land plots, a state cadastral valuation of land is carried out, except for the cases specified in clause 3 of this article. State cadastral valuation of land is carried out in accordance with the legislation of the Russian Federation on valuation activities.

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Usually the cadastral value is less than the market value, although not always (see part 3 of article 66 of the Land Code of the Russian Federation). Therefore, when filing a claim on the division of property, it is possible to estimate the value of the land plot on the basis of the cadastral value of the land plot.

Assessment of the car and other movable property when filing a claim on the division of property of spouses

In relation to a car and other movable property (furniture, household appliances, cash on accounts and deposits in banks, etc.) when submitting a claim, the market value of the car and other movable property must be taken into account.

There are two options.

In the first case, a preliminary approximate assessment of the value of the property by the plaintiff is made, which is indicated in the statement of claim. The plaintiff approximately estimates how much a car can cost, etc., taking into account the prices of a new object, taking into account wear and tear, obsolescence, etc. In the second case, the appraisal will assess the property Plus, the appraiser estimates the property that the court, when dividing the property, will accept the evaluation report as evidence. It is most likely that (unless the defendant proves otherwise) the value of the property will be set at the rate indicated in the evaluation report. The disadvantage is that the services of an appraiser are payable, and with a large number of objects of appraisal, the cost of services of an appraiser can be significant.


section of independent evaluation

Pledging or making a mortgage without applying to the Valuation Company and professional the help of the appraiser is indispensable.

Property valuation is a procedure for determining the value of an object in accordance with the goal and tasks. This is a fairly broad concept, including the evaluation of land plots, buildings, structures, infrastructure elements, communications, vehicles, aircraft and ships, machinery, equipment, securities, property complexes and business (for a full list of services, in the section of independent evaluation ).

Property valuation is conducted in cases established by the legislation of the Russian Federation, as well as at the request of one of the parties to the agreement or by agreement of both parties. Objectives of valuation of property and types of value are different: The evaluation report is required when making transactions, when transferring to a pledge or for rent, when drawing up an insurance contract, for making property in the authorized capital of organizations. Also, you cannot do without applying to the appraisal company, if necessary, to resolve property disputes, with reorganization, bankruptcy or privatization.

The cost is determined taking into account all the features and parameters inherent in the objects of valuation. Traditional division of property is carried out by types:

Real estate – land, buildings, structures, fences, paving, engineering networks;

Movable objects – vehicles, aircraft, railway transport, floating equipment, equipment;

Business shares in it and securities.

Property valuation is carried out both compulsorily and on a voluntary basis, taking into account a number of federal and international standards, as well as in strict compliance with the requirements of the Law “On Appraisal Activities in the Russian Federation”. For some types of objects, special rules are established, so the appraisers use them in addition to the general provisions of the law. Individuals, companies, government agencies, banks and investors often need information on the value of physical objects. Russian citizens most often resort to the services of an appraiser in the following situations:

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When drawing up various transactions related to land, buildings and structures, with movable property and vehicles;

  • When drawing up an insurance contract and for calculating the amount of compensation;
  • When transferring property as collateral or when making a mortgage loan;
  • At the damage caused to property – at plunder, fire, flooding;
  • For payment of state duty upon inheritance;
  • When drawing up a gift agreement;
  • When seizing property of individuals for state needs;
  • When deciding in court.
  • Legal entities order evaluation reports:
  • For revaluation of fixed assets;

When entering property in the authorized capital;

  • If necessary, in attracting investments and in the process of drawing up a business plan;
  • To attract an investor or to study the prospects for investment in a particular facility;
  • When lending and transferring property as collateral;
  • When preparing an enterprise for restructuring, selling or bankruptcy proceedings;
  • If necessary, payment of the value of a share to one of the participants in a limited liability company;
  • In cases of payment of securities by property;
  • At purchase and sale, registration of rent;
  • For tax accounting purposes and for determining the tax base;
  • When solving issues related to property, in courts.

The choice of methods for assessing the property depends on the type and characteristics of the assessed object, as well as on the availability and completeness of the necessary information about the property. Without fail it is necessary to check the feasibility of using each of the three methods:

Costly :

an analysis is made of the necessary costs for the creation of a similar property or its restoration;

Comparative :

in the calculations similar to the property being valued and the supply prices on the market of similar objects are used;

Profitable :

the analysis of possible incomes from possession or disposal of property in the future is carried out, profit and expenses at operation, and also an opportunity of resale of object are considered.

Please note that the evaluator must specify in the Evaluation Report the reasoning behind the selection, and in case of impossibility of application, a reasoned refusal to use one or more methods.

Applying to the appraisal company, you will need to clearly state the purpose and the task of assessing the property, clarify all the characteristics of the object and provide legal documents and technical documents for it. During the negotiations, the appraiser will be able to voice the cost of the services and the timing of the work, an agreement for the evaluation will be concluded with you. Your further actions are as follows:

Boca Raton Executive Suites – Office Space Boca Raton

Previous Office Stop Chief Steve Odland had a stupendous arrangement for a worldwide central command in 2006. After two years, representatives moved into a superb building transcending Military Trail at Clint Moore Street in boca raton executive suites that ignores a fairway. f

Seven years and two Chiefs later, Office Warehouse is preparing to converge with Massachusetts-based Staples. Ron Sargent, Staples Chief, has said the joined office-supply retail organization – if affirmed by antitrust controllers – would be based at its central command in Framingham, Mass.

Accordingly, the boca raton executive suites land market could abruptly have more than 625,000 square feet of prime office space needing new inhabitants.


“That would dump a considerable measure of office space into the boca raton executive suites advertise,” said Dwindle Reed, dealer for Florida Business Realty Administrations in boca raton executive suites.

Finding a solitary organization — or a few — to fill all that space wouldn’t be simple, nearby land specialists say.

Reed said the circumstance would be nearly as terrible as in 1996 when IBM migrated the vast majority of its boca raton executive suites workers to North Carolina and Texas.

Long-term South Florida engineer Malcolm Spreads said if Office Warehouse leaves, “mentally it’s terrible for the market and awful for Palm Shoreline Region.”

Reed said the Workplace Stop’s building, finished in 2008, is “best in class, an extraordinary area,” he said. “Be that as it may, that is a ton of room to ingest.”


After Tyco Worldwide emptied One Town Center in boca raton executive suites, that put 200,000 square feet available. Following four years, just 30 percent to 40 percent of that space is possessed, Reed said.

“Utilize that as a gage,” he stated, however including that 2011 was an all the more difficult financial time.

While it could take as long as a year for the merger to be finished, the huge office opening would come when the business advertise has started to recoup.

The opportunity rate dropped to 6.7 percent from 7 percent a year prior, as indicated by a report by Cushman and Wakefield South Florida. “The hunger stays solid for all around found Class An advantages, with access to proficient transportation,” the report says.

Jonathan Kingsley, South Florida specialist for business land firm Colliers Global, concurs the loss of Office Stop “would be a major hit.” He said discovering at least one inhabitants for the tremendous building would be “a staggering undertaking” that could take three or four years.


Another central command organization would be perfect for the space, however he said it’s more probable the workplace would need to be partitioned — maybe into three 200,000-square-foot workplaces. In any case, discovering inhabitants to fill those sizes is troublesome also, he said.

Margarines said a 100,000-to 200,000-square-foot occupant could likely get a decent arrangement on the property, after Office Station’s rent lapses. Be that as it may, the property doesn’t fit be partitioned into littler spaces, he said.

Staples Chief Ron Sargent has said while the joined organization home office would be at its Framingham, Mass., grounds, it might have a “nearness” in Boca Raton.

In the event that Office Stop kept even piece of the building, that could make renting remaining space significantly all the more difficult, Kingsley said. He said it would likely take three or four years to re-rent the building.


Then, neighborhood retailers and eateries would experience the ill effects of the loss of almost 2,000 representatives as of now working at the workplace, he said.

All things considered, intermediaries said the Boca Raton area likewise would be prime office space in a two region that has couple of expansive business spaces accessible.

The central command at 6600 N. Military Trail was custom worked for Office Terminal. It has three vertical, interconnected, five-story structures that are connected by glass-encased chambers. It was intended to suit 2,500 Office Warehouse workers.

The building was sold in 2011 by educators’ retirement subsidize TIAA-CREF to Center point Properties Trust, a land venture confide in Newton, Mass., for $171 million, as indicated by Palm Shoreline Area court records. That REIT has since advanced into Chicago-based Value Ward REIT drove by very rich person financial specialist Sam Zell, previous proprietor of the Tribune Co. in Chicago, and after that parent to the Sun Sentinel Co.

Office Terminal had a 15-year rent on the working at the season of its deal.

In the event that administration controllers enable the merger to continue, Business Improvement Board president Kelly Smallridge still would like to persuade Staples that boca raton executive suites is the place to base the organization home office. She said she would work with the proprietor to search for three 200,000-square-foot clients that were perfect with each other, maybe provincial home office.

“We would prefer even not to consider that being void,” she said.