Free RICS APC Revision Quiz - Valuation - Specific Purpose Valuations

Welcome to one of our free Property Elite RICS APC revision quizzes. If you'd like to purchase the full length version of this, or any other, revision quiz, just head to our website eShop.

Please be aware that on some questions, you can select more than one answer using the check boxes.

Good luck!

Question Title

* 1. What does VPGA 1 relate to?

Financial statements

Secured lending

Portfolios

Question Title

* 2. Why do financial statement valuations require particular care?

They must comply strictly with the financial reporting statements adopted by the entity

They are regulated by HMRC

They may be relied upon by third parties

Question Title

* 3. What are the two commonly used financial reporting standards used in the UK?

IFRS

UK GAAP

IASB

IAS

Question Title

* 4. What additional criteria apply to secured lending valuations?

That the valuer has had no previous, current or anticipated involvement with the borrower, or prospective borrower, the asset to be valued or any other party connected with a transaction for which the lending is required (for 24 months, or longer if requested)

Question Title

* 5. What does UK VPS 3 relate to?

Regulated purpose valuations: supplementary requirements

Secured lending valuations for UK listed companies

Secured lending for high value UK commercial properties

Question Title

* 6. What does VPGA 9 relate to?

Business valuations

Identification of portfolios, collections and groups of properties

Material uncertainty

Question Title

* 7. What is the general principle when dealing with a portfolio valuation?

You must always value portfolio properties as one lump market value sum

The valuation purpose and your client's instructions will dictate the approach you take to lotting

You must always report values independently and ignore any positive or negative 'portfolio effect'

Question Title

* 8. Which of these would require a regulated purpose valuation?

Valuations for financial reporting

Inclusion in prospectuses and circulars issued by UK companies

In connection with takeovers and mergers

For authorised collective investment schemes

For unauthorised and unregulated collective investment schemes

Question Title

* 9. What additional disclosures must you make in a regulated purpose valuation?

The total fees paid by the client proportionate to the turnover of the valuation firm (in the preceding 12 months), effectively stated within a 5% range

A statement disclosing the nature and duration of the client relationship and previous work undertaken (and if there is no prior relationship, then this should be clearly stated)

Nothing further - this only applies to secured lending valuations

In relation to the firm’s preceding financial year the proportion of the total fees, if any, payable by the client to the total fee income of the valuer’s firm expressed as either less than 10%, or if more than 10%, an indication of the proportion within a range of 10 percentage points

If since the end of the last financial year, it is anticipated that there will be a material decrease in the proportion of the fees payable, or likely to be payable by the client

Question Title

* 10. What is the statutory basis of market value (defined in the relevant tax legislation)?

Same as market value, with the additional assumption of vacant possession

Price which the property might reasonably be expected to fetch if sold in the open market at that time, but that price must not be assumed to be reduced on the grounds that the whole property is to be placed on the market at one and the same time

Same as fair value, with the disregard of any special purchaser

Price which the property might reasonably be expected to fetch if sold in the open market at that time, but that price may be reduced on the grounds that the whole property is to be placed on the market at one and the same time

Page1 / 1

100% of survey complete.