Asset Valuation Practice I (Tangible & Resource Assets) study guide
Asset Valuation Practice I (Tangible & Resource Assets) · Work through your exam, one topic at a time.
Asset Valuation Practice I (Tangible & Resource Assets) is a professional examination for valuers who work with physical assets: land, buildings, plant and machinery, mineral and energy interests, and biological or agricultural resources. It is aimed at candidates moving beyond general valuation theory into applied practice, typically those in or entering roles at valuation firms, lenders, insurers, resource companies, or public-sector asset management. The Asset Valuation Practice I (Tangible & Resource Assets) study guide has 8 sections and about 3,436 words.
01Professional Standards, Ethics, and Legal/Regulatory Framework
This domain tests whether you can frame an engagement correctly, fix the basis of value, disclose conflicts, and keep the work product defensible against a regulator, a court, or an auditor. Questions cluster around "which standard applies, and what must be disclosed," plus boundary disputes such as fixtures versus chattels.
493 words, about 2 min02Valuation Principles, Value Concepts, and Bases of Value
This domain tests whether you can select the correct basis of value, define it accurately, and keep it consistent from scope of work through to the reconciliation. Most marks are lost by importing a definition from the wrong regime.
463 words, about 2 min03Machinery, Equipment, and Personal Property Valuation
This domain tests the cost approach in detail, the definition and measurement of the three depreciation categories, and the distinction between installed and uninstalled, in-place and removal values. Reproduction cost replicates the identical asset; replacement cost new reflects a modern equivalent with equivalent utility and is usually preferred where technology has moved.
404 words, about 2 min04Real Property (Land and Buildings) Valuation
This domain tests the three approaches as applied to land and buildings, the highest and best use test, and the treatment of lease interests where contract rent departs from market rent. Sales comparison: adjust for property rights conveyed, financing terms, conditions of sale, market movement, location, size, configuration and condition.
420 words, about 2 min05Mineral, Oil and Gas, and Extractive Resource Assets
This domain tests resource and reserve classification, the interest being valued, and a defensible DCF built from a production profile and a stated price deck. Under the Petroleum Resources Management System, reserves are commercially recoverable.
394 words, about 2 min06Biological and Agricultural Assets and Other Natural Resources
This domain tests the accounting and valuation treatment of living assets, where biological transformation creates value without a transaction, and the treatment of natural resource rights such as water, timber and quotas. Biological assets are measured at fair value less costs to sell at initial recognition and at each reporting date, with the change recognised in profit or loss.
426 words, about 2 min07Valuation Approaches and Methods for Tangible and Resource Assets
This domain tests method selection, the internal consistency of each method, and the reconciliation that explains why one conclusion was preferred. Cost, income and market approaches each answer a different question.
390 words, about 2 min08Data, Analysis, and Report Writing
This domain tests evidence quality, the distinction between assumptions and special assumptions, and whether your report would survive scrutiny by a reader who never met you. IVS requires inputs that are sufficient, verifiable where possible, and consistent with the selected basis of value.
446 words, about 2 min