AACA APE NEP flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Logbook

A contemporaneous record of the candidate's professional valuation work, listing dates, tasks, methods used, time spent, and a verifiable supervisor or client for each entry.

Statement of Practical Experience

A summary document declaring the candidate's cumulative months and areas of valuation experience, which must reconcile with the detailed logbook entries submitted alongside it.

Supervisor attestation

A signed declaration by a qualified valuer confirming the candidate's role, dates, and level of responsibility on specified engagements, used to verify logbook claims.

Acceptable experience

Work performed in a professional valuation capacity under qualified supervision; purely clerical, marketing, or administrative duties are normally excluded from the count.

Experience look-back window

The defined period, commonly five to ten years before application, within which claimed practical experience must have been obtained to count toward eligibility.

Contemporaneity requirement

Logbook entries must be recorded close to the time the work was performed; retrospectively reconstructed records attract scrutiny and may be rejected as unreliable evidence.

Breadth requirement

A rule limiting the credit given to experience concentrated in one asset class, requiring candidates to demonstrate work across several valuation categories.

Evidence of engagement

Supporting documents such as engagement letters, signed reports, or timesheets that corroborate a logbook entry and confirm the candidate's actual involvement.

Reconciliation check

The cross-check confirming that total months and hours in the Statement of Practical Experience equal the sum of the individual logbook entries.

Closed-book examination

A written assessment sat without access to textbooks, notes, or reference materials, requiring candidates to recall standards, methods, and formulae from memory.

Syllabus weighting

The published percentage allocation of examination marks across topic areas, used to prioritise revision effort in proportion to likely question coverage.

Income approach

A valuation method converting expected future income into present value, typically via direct capitalisation of net operating income or a discounted cash flow analysis.

Capitalisation rate

The divisor applied to a single year's sustainable net income to derive value; it reflects risk, growth expectations, and market evidence for comparable assets.

Discounted cash flow

A technique projecting periodic cash flows and discounting them to present value at a rate reflecting time value and risk, plus an explicit terminal value.

Terminal value

The value attributed to cash flows beyond the explicit forecast period, usually estimated by capitalising a stabilised year or applying an exit multiple.

Discount rate consistency

The rule that the discount rate must match the cash flow basis: nominal rates with nominal flows, and post-tax rates with post-tax flows.

Market approach

A valuation method deriving value from observable prices of comparable assets, with adjustments for differences in condition, location, size, and transaction timing.

Cost approach

A valuation method estimating replacement or reproduction cost of an asset and deducting accrued depreciation for physical, functional, and economic obsolescence.

Depreciated replacement cost

The current cost of replacing an asset's service capacity less deductions for physical deterioration and all forms of obsolescence, used where market evidence is absent.

Stated assumptions

Explicitly recorded conditions underpinning a valuation, such as tenure, planning status, or occupancy, which a marker or reader must be able to identify and assess.

Sensitivity analysis

A cross-check showing how the concluded value changes when key inputs, such as the capitalisation rate or rent, are varied within plausible ranges.

Exam time allocation

The practice of distributing available minutes across questions in proportion to marks available, ensuring every question receives an attempted answer.

Professional ethics question

An examination item testing independence, conflict disclosure, confidentiality, and competence boundaries, typically answered by applying the code of conduct to the facts.

Statutory reference

Citation of the relevant legislation or regulation by name and section, required where an answer depends on a legal requirement rather than general principle.

Oral examination panel

A group of qualified valuers who question the candidate on the submitted report and on professional standards, assessing judgement and communication.

Critical report

The valuation report submitted in advance of the interview, which the candidate must defend in terms of method choice, assumptions, and conclusion.

Method selection defence

The candidate's reasoned explanation of why the chosen valuation approach was most appropriate and why alternative approaches were considered and rejected.

Personal responsibility

The candidate's demonstrable ownership of the submitted work, distinguishing their own contribution from that of the supervising valuer.

Ethics scenario question

An interview prompt posing a conflict, pressure, or confidentiality dilemma, requiring the candidate to identify the principle and apply it to the facts.

Structured answer technique

A response format stating the governing principle, applying it to the specific facts, and concluding; unstructured answers lose credit even when factually correct.

Competence boundary

The limit of a valuer's knowledge and skill; work falling outside it must be declined or referred, and admitting this at interview demonstrates professional judgement.

Assumption limitation

An acknowledgement that a stated assumption may not hold, together with its effect on the concluded value, viewed as a strength rather than a weakness.

Code of conduct knowledge

Familiarity with the institute's ethical rules on integrity, objectivity, confidentiality, and professional behaviour, tested directly by the interview panel.