Chapter I General Provisions
Article 1 In order to regulate the behavior of asset appraisal institutions and their asset appraisal professionals in using asset appraisal methods in the execution of asset appraisal business, these Standards are formulated in accordance with the Basic Standards for Asset Appraisal.
Article 2 The term "asset appraisal method" as mentioned in these Standards refers to the ways and methods of evaluating and estimating the value of assets. Asset appraisal methods mainly include three basic methods: market method, income method, cost method and their derivatives.
Article 3 The asset appraisal business shall abide by these Standards.
Chapter II Market Law
Article 4 The market method, also known as the comparison method and the market comparison method, refers to the general name of the evaluation methods for determining the value of the appraisal object by comparing the appraisal object with the comparable reference object based on the market price of the comparable reference object.
Market method includes many specific methods. For example, transaction case comparison method and listed company comparison method in enterprise value evaluation, direct comparison method and indirect comparison method in single asset evaluation, etc.
Article 5 When selecting and applying the market method, asset appraisal professionals shall consider the preconditions for applying the market method:
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(1) The comparable reference object market of the appraisal object is open and the transaction is active;
(2) Necessary information about the transaction can be obtained.
Article 6 An asset appraisal professional shall select a comparable reference object according to the characteristics of the appraisal object and the following principles:
(1) Selecting the same or comparable reference object as the transaction market of the appraised object;
(2) Select an appropriate number of reference objects that are the same as or comparable to the evaluation objects;
(three) select the same or similar reference as the value influencing factors as the evaluation object;
(4) Select the reference object whose trading time is close to the evaluation benchmark date;
(5) Selecting reference objects with transaction types suitable for evaluation purposes;
(6) Selecting reference objects that are normal or can be corrected to normal transaction prices.
The comparison benchmark of market method is usually different due to the asset type and industry of the assessed object, which can be expressed in the form of value ratio and transaction unit price.
Article 7 When applying the market method, asset appraisal professionals shall compare and analyze the appraisal object with comparable reference objects, and make reasonable corrections to the differences in value influencing factors and trading conditions.
Article 8 When applying the market method, we should pay attention to the following factors that affect the reliability of the evaluation and calculation results:
(1) Market activity;
(2) Similarity of reference objects;
(3) How close the trading time of the reference object is to the evaluation benchmark date;
(4) Comparability of the transaction purpose and conditions of the reference object;
(5) Adequacy of reference information.
Chapter III Income Method
Article 9 Income method refers to various evaluation methods to determine the value of the appraised object by capitalizing or discounting the expected income of the appraised object.
The income method includes many specific methods. For example, cash flow discount method and dividend discount method in enterprise value evaluation; Incremental income method, excess income method, license fee saving method and income sharing method in intangible assets evaluation.
Article 10 When selecting and using the income method, asset appraisal professionals shall consider the preconditions for the application of the income method:
(1) The future income of the appraised object can be reasonably expected and measured in currency;
(2) The risk corresponding to the expected return can be measured;
(3) The income period can be determined or reasonably expected.
Eleventh asset appraisal professionals should focus on:
(1) Type and caliber of expected income. For example, income, profit, dividend or cash flow, and income, pre-tax or
After-tax income, nominal or actual income, etc.
Nominal income includes the expected inflation level, while real income will eliminate the impact of inflation.
(two) the income forecast should be based on the nature of the assets, the available information and the required value type.
Asset appraisal professionals should analyze and evaluate the financial information and other relevant information and assumptions used in income forecasting, and evaluate their appropriateness.
Article 12 When determining the income period, asset appraisal professionals should consider the life expectancy, laws and regulations and relevant contracts of the appraised object, and the selection of detailed forecast period should consider the cycle and periodicity of the appraised object to achieve stable income.
Article 13 The discount rate used in the income method evaluation should not only reflect the time value of funds, but also reflect the risks related to the income type and future operation of the assessed object, and match the selected income type and caliber.
Article 14 When applying the income method, we should pay attention to the following factors that affect the reliability of the evaluation and calculation results:
(a) Unable to obtain the necessary information to support professional judgment;
(2) The appraised object has no historical income record or has not yet started to generate income, and the income forecast is only based on expectations;
(3) Significant changes have taken place in future business model or profit model.