Asset Valuation Working Papers

Main contents:

Part One: Introduction to the Development of Working Paper Criteria

Part Two: Working Paper Criteria Content Introduction

Part Three: Reference Format Case Introduction

Asset Valuation Standards Framework System Diagram

Relevant procedural requirements in the basic standards

Chapter 3 Operating Guidelines

Article 12 When performing valuation business, a registered asset appraiser shall perform appropriate valuation procedures based on the specific circumstances of the business.

Article 13 The evaluation procedure includes eight items

Code project implementation status

Personnel; time; data collection; research; drafting; modification, solicitation Opinions; collection of feedback after the draft is issued; revisions

Analysis of related issues

my country’s evaluation industry lacks research and standardization of evaluation procedures

The development of evaluation practice puts forward higher requirements for standardized procedures

Evaluation guidelines are conducive to the definition of legal responsibilities (the industry has entered a stage of high legal risks)

Evaluation procedure guidelines are the basic guarantee of evaluation quality

The basis for the formulation of basic standards for asset valuation

The development of domestic and foreign valuation procedure standards

Guiding ideas

Accurate positioning

Clear the relationship between draft standards and other procedural standards

The problems that evaluation standards should solve

The extent to which they should be used as standards,

In the process of standard formulation Advancement and robustness

Coordination with basic standards

The role and basis for the formulation of working paper standards

The first article is to standardize the preparation of working papers, To manage and safeguard the interests of the public and the legitimate rights and interests of all parties involved in asset evaluation, this guideline is formulated in accordance with the "Asset Appraisal Guidelines - Basic Guidelines".

Framework of Working Paper Criteria

Guidelines

Explanation of Criteria

Recommended Format of Papers

Management Working Papers, Operational working papers

Income method drafts, cost method drafts, market method drafts

Definition

The so-called working papers refer to the evaluation performed by a registered asset appraiser Work records and related materials formed by the business, reflecting the implementation of the assessment procedures and supporting the assessment conclusions.

Introduction to procedural guidelines

General principles

Basic requirements

Clearly clarify the basic matters of the assessment business

Sign a business engagement letter

Prepare an assessment plan

On-site investigation

Collect assessment data

Evaluate estimates

Prepare and submit assessment reports

Archiving working papers

Basic requirements

Working papers should truly reflect the assessment business process and support the assessment conclusions.

Working papers should be true and complete, with highlighted key points, clear records and clear conclusions. A registered asset appraiser can reasonably determine the complexity (or simplicity) of the working paper based on the specific circumstances of the valuation business.

Working papers can be in the form of paper documents, electronic documents or other media. The registered asset appraiser can reasonably select the form of working papers based on the specific circumstances of the valuation business. Important working papers in the form of electronic documents or other media should be formed into paper documents at the same time.

Basic content requirements

Working papers are usually divided into management working papers and operational working papers.

Management working papers refer to the documents formed by the registered asset appraiser to plan, arrange (a tautology, it is better to change to undertake and plan), control and manage the appraisal business during the execution of the appraisal business. Work records and related information.

Operational working papers refer to the work records and related information generated by the registered asset appraiser when performing on-site investigations, collecting appraisal data and evaluating estimation procedures.

Contents of management papers

Management working papers usually include the following basic contents:

(1) Records of basic matters of business evaluation;

< p>(2) Business engagement letter;

(3) Evaluation plan;

(4) Records of handling major issues during the evaluation process;

(5) Audit records of assessment reports.

Contents of operational working papers

The contents of operational working papers vary depending on the purpose of assessment, assessment objects and assessment methods, and usually include the following:

< p>(1) On-site investigation records and related materials;

1. Asset evaluation declaration information provided by the client; 2. On-site investigation records;

3. Correspondence record; 4. Proof of ownership of major or important assets;

5. Financial, auditing and other information related to evaluation.

(2) Evaluation data collected;

1. Market research and data analysis information; 2. Relevant historical and forecast data;

3. Inquiry records; 4. Other expert appraisals and professional reports;

5. Descriptions, certifications and commitments provided by the entrusting party and relevant parties.

(3) Records of the evaluation and estimation process.

1. Selection of important parameters and recording of the formation process;

2. Records of value analysis, calculation, and judgment processes;

3. Records of the process of forming evaluation conclusions.

Preparation and management of working papers

In the process of performing the valuation business, the registered asset appraiser should form work records that reflect the valuation procedures and support the valuation conclusions, and after the completion of the valuation business, , organize and file working papers.

The registered asset appraiser collects the information related to the appraisal business provided by the client and relevant parties as working papers, which should be signed or sealed by the provider and promised to be responsible for its authenticity and legality.

Working papers should reflect the review process. When reviewing the working papers, the reviewer shall express the review opinions in writing and sign.

Preparation and management of working papers

After the completion of the valuation business, the registered asset appraiser shall include the working papers and valuation reports, etc. (preparation catalog,) into the valuation business files, It shall be properly managed by the evaluation agency in accordance with the national laws and regulations on archives management and the provisions of these guidelines.

The retention period of valuation business files is: the retention period of valuation business files involving listed companies, issuance of stocks and property litigation is ten years; the retention period of valuation business files for other valuation purposes is five years, and the storage date is from The calculation starts from the date of the assessment report. If national laws and regulations provide otherwise, such provisions shall prevail.

The appraisal agency shall not delete or destroy the completed archived appraisal business files within the specified retention period. .

Management manuscript

Table of contents

Situation survey form

Risk assessment form

Business engagement letter

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Plan and information list

Processing records

Audit form

Basic elements of business engagement letter

Names of contracting parties

Valuation purpose

Valuation object and scope

Valuation base date

Value type

Fees and payment time Method

Reporting users and methods

Rights and obligations of the parties

Liability for breach of contract and dispute resolution

Contracting time

< p>Prepare an assessment plan

-before on-site investigation

Develop a comprehensive assessment plan

Contents: specific assessment procedures, time schedule, personnel arrangements, cost budget

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Communicate with the client - key points and key links

Plan adjustment

Plan review and approval

On-site investigation - (Relevant situation investigation)

1. Basic information-financial accounting system, statement verification--

2. Asset survey-understand and evaluate the company's asset management system and conduct asset sampling

< p>Check

3. Assessment sampling

4. Check of legal ownership information and sources of data

5. Supplement and adjust on-site work

Note:

Collect valuation data

Valuation data

Source: market, client, asset holder, government, intermediary, etc.

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Judgment: judgment on source, availability, etc., rationality, relevance, timeliness, completeness

Timely supplement

Preparation and submission of evaluation report

Review of the evaluation report and implementation of the evaluation procedures

The project leader should review and self-examine the following contents at the evaluation site:

(1) Whether the enterprise Understand the operating status of the company and make a correct evaluation of the risk assessment;

(2) Whether the assessment procedure is carried out as planned, and if it is not carried out, is there a sufficient reason?

< p>(3) Whether the evaluation process is recorded in working papers (on-site investigation records, etc.);

(4) Whether sufficient evaluation basis is obtained (inquiry records, market survey records);

(5) Whether the check relationship in the assessment form is correct;

(6) Whether the inventory has been randomly checked and whether the current payment has been confirmed;

(7) Review whether the evaluation instructions and forms meet the prescribed requirements;

(8) Whether opinions have been exchanged with the entrusting unit on the evaluation results, and what are the conclusions;

(9) Original data (reports, statements, etc.) Detailed list, letter of commitment) are sufficient, and whether the customer has stamped them.

After the above review, the project leader can draft the evaluation report

2. Review by each department manager

The department manager should review the evaluation report The manuscript will be reviewed intensively.

The review content is as follows:

(1) Whether the evaluation plan has been approved and implemented as required;

(2) Conduct a detailed review of the evaluation report, including: Involving the professional department Whether the assessment method is correct; whether major matters have been disclosed; whether the tables and report figures are correct.

(3) Whether all contents are complete and whether there are any omissions or defects;

(4) Whether the company’s subsequent events or contingent liabilities and other major matters have been disclosed ;

(5) Whether the content and format of the overall report comply with relevant national regulations.

3. Review by the legal person (or general manager)

Conduct a focused review of the work papers reviewed by the project leader and department manager.

(1) Whether the review and assessment plan has been approved, and whether the major issue request report is complete and approved step by step;

(2) Whether the results of handling major issues are appropriate;< /p>

(3) Analyze and judge whether the evaluation results are appropriate;

(4) Whether there is a work summary;

(5) Use due professional prudence, consider the Whether the handling of major matters, evaluation conclusions and evaluation explanations are in compliance with the current national regulations, and the final report will be signed.

Review records of the third-level review of asset appraisal working papers are generally carried out through the "Asset Appraisal Review Record Form" (Table 4-1). Reference format of this table:

Issues that should be paid attention to during the review:

1. Whether the selection of evaluation methods for various assets is appropriate

2. Whether there are any missing items Or the phenomenon of repeated assessment

3. Check the assessment details and conduct an increase and decrease value analysis

4. The consistency of the assessment values ??when multiple people intervene in similar assets

5. Pay attention to sensitive issues and risk control

Cost method (reference format introduction)

Current assets

Long-term investment

House Appraisal Form

Structure Appraisal Form

Machinery and Equipment

Land Use Rights

Other Assets

Liabilities

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Income method (reference format)

The analysis and calculation category mainly includes the income method applicability analysis table, financial indicator analysis table, and discount rate calculation table. The three tables are filled in by the registered asset appraiser based on the analysis

of the financial report, financial status and collected information of the enterprise being evaluated.

The analysis survey category includes main asset status survey forms, enterprise comprehensive capability survey forms

and industry status survey forms, etc. These forms are used as analysis and forecasting categories

Supporting information

The analysis and prediction category includes two levels: summary and detail, and two levels of analysis and prediction

Tables in the parts

Market method (reference format)< /p>

Comparable company equity

Reference corporate factor analysis

M&A case method

File management of asset evaluation working papers

1. Appraisal institutions must have clear awareness of file construction and file management

Basic requirements for standardized management of asset appraisal files

2. Asset appraisal business file directory:

< p>Classification and arrangement of asset appraisal business files.

3. Ownership of asset appraisal working papers

Key issues

1. Program positioning, definition, basic procedures and specific procedures

2. Strengthen the procedural requirements for responsibility definition and risk judgment

3. Importance judgment

4. Requirements for value type analysis procedures in the evaluation procedure

5 . The asset appraiser’s responsibilities for verifying the legal ownership information and sources of the appraisal object