Asset Valuation Practice I (Tangible & Resource Assets) study plan
Asset Valuation Practice I (Tangible & Resource Assets) · Give each week a clear focus.
8 weeks · About 6 hours per week
Real Property (Land and Buildings) Valuation & Valuation Approaches and Methods for Tangible and Resource Assets
Explain the three approaches (cost, market, income) and when each is applicable to real property
Perform a sales comparison approach for a residential property using at least four comparables, adjusting for time, location, and physical differences
Apply the cost approach (replacement cost new less depreciation) to a commercial building, distinguishing physical, functional, and external obsolescence
Compute direct capitalization and yield capitalization (DCF) for a small income-producing property
Your checkpoint
A written valuation of a single-family rental property (minimum 800 words) applying all three approaches, with a reconciliation of value indications and a table of adjustments.
Real Property (Land and Buildings) Valuation & Machinery, Equipment, and Personal Property Valuation
Outline the legal interests in land (fee simple, leasehold, easements) and how they affect value
Describe the steps in the valuation process for real property, from problem identification to report
Identify the types of machinery and equipment and the data sources needed for a plant valuation
Apply the cost approach to a group of manufacturing equipment, including installation and indirect costs
Your checkpoint
A valuation report extract (1,000 words) for a mixed-use property (land + building + equipment) that explains the allocation of value among components and cites relevant standards.
Machinery, Equipment, and Personal Property Valuation & Mineral, Oil and Gas, and Extractive Resource Assets
Value a piece of mobile equipment using the market approach with dealer and auction data
Explain the concept of economic life and how to estimate remaining useful life for equipment
Describe the unique characteristics of mineral, oil and gas assets (depletion, reserves, royalties)
Outline the reserve classification system (proved, probable, possible) and its impact on valuation
Your checkpoint
A comparative valuation of a used excavator using three approaches, with a discussion of the reliability of each data source (600 words).
Mineral, Oil and Gas, and Extractive Resource Assets & Valuation Approaches and Methods for Tangible and Resource Assets
Apply the income approach to an oil and gas property using discounted cash flow with production profiles
Calculate the value of a mineral interest using the royalty method and the working interest method
Explain how to adjust for risk and uncertainty in extractive asset valuation
Critique a DCF model for a mining project, identifying key assumptions and sensitivities
Your checkpoint
A DCF valuation of a hypothetical oil field (10-year production, decline curve, price deck) with a sensitivity table for discount rate and oil price (Excel + 500-word memo).
Professional Standards, Ethics, and Legal/Regulatory Framework & Valuation Principles, Value Concepts, and Bases of Value
Summarize the key requirements of the valuation standards (e.g., IVS, USPAP) regarding ethics, competence, and disclosure
Distinguish between market value, fair value, investment value, and liquidation value
Identify common ethical dilemmas in valuation (e.g., pressure to influence value) and the appropriate response
Explain the concepts of highest and best use and how it applies to tangible assets
Your checkpoint
A one-page ethics checklist and a 500-word case analysis of a valuation engagement where the client requests a value that is not supportable.
Biological and Agricultural Assets and Other Natural Resources & Machinery, Equipment, and Personal Property Valuation
Describe the valuation of biological assets (livestock, crops, trees) under both cost and market approaches
Explain the impact of biological transformation and harvest cycle on value
Value a piece of agricultural machinery using the cost approach and compare with market data
Identify the data sources for agricultural commodity prices and their reliability
Your checkpoint
A valuation of a 100-head cattle farm (land, buildings, livestock, equipment) with a breakdown by asset class and a discussion of the appropriate valuation basis (800 words).
Valuation Approaches and Methods for Tangible and Resource Assets & Data, Analysis, and Report Writing
Select the appropriate valuation approach for a given tangible asset scenario and justify the choice
Apply the market approach to a specialized piece of equipment using the guideline public company method
Structure a valuation report according to professional standards (executive summary, scope, analysis, conclusion)
Write clear and concise descriptions of assets, assumptions, and limiting conditions
Your checkpoint
A full valuation report (1,500 words) for a small manufacturing business, including machinery, equipment, and real property, following a standard report template.
Professional Standards, Ethics, and Legal/Regulatory Framework & Valuation Principles, Value Concepts, and Bases of Value & Machinery, Equipment, and Personal Property Valuation & Real Property (Land and Buildings) Valuation & Mineral, Oil and Gas, and Extractive Resource Assets & Biological and Agricultural Assets and Other Natural Resources & Valuation Approaches and Methods for Tangible and Resource Assets & Data, Analysis, and Report Writing
Review all domains using a practice exam and identify weak areas
Revisit ethical and standards requirements and ensure familiarity with key definitions
Practice time management by completing a 50-question mock exam under timed conditions
Create a personal summary sheet of formulas and key concepts for final review
Your checkpoint
A scored practice exam (minimum 70% correct) with a log of incorrect answers and a one-page formula sheet.
Milestones
Week 2: Can you explain the three approaches and apply them to a simple property without notes? Complete a self-quiz with 80% accuracy on real property concepts.
Week 4: Can you build a DCF model for an oil and gas asset from scratch and explain the key drivers? Submit the DCF deliverable and receive peer feedback.
Week 6: Can you value a biological asset using both cost and market approaches and reconcile the difference? Pass a 20-question quiz on domain 6 with 75% or higher.
Week 8: Score at least 70% on the full mock exam and demonstrate improvement in weak areas identified in week 7.