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USPAP 2018-2019 Edition

© The Appraisal Foundation

59

STANDARD 10

Comment: An appraiser must use care when identifying the client to avoid violations of the

Confidentiality section of the ETHICS RULE. If a client requests that the client’s identity be withheld

from the report, the appraiser may comply with this request. In these instances, the appraiser must

document the identity of the client in the workfile and must state in the report that the identity of the

client has been withheld at the client’s request.

Types of intended users of the report might include parties such as lenders, employees of government

agencies, partners of a client, and a client’s attorney and accountant.

(ii)

state the intended use of the appraisal;

99

(iii) summarize information sufficient to identify the business or intangible asset and the interest appraised;

Comment: The identification information must include property characteristics relevant to the type and

definition of value and intended use of the appraisal.

(iv) state the extent to which the interest appraised contains elements of ownership control, including

the basis for that determination;

(v)

state the extent to which the interest appraised lacks elements of marketability and/or liquidity,

including the basis for that determination;

(vi) state the standard (type) and definition of value and the premise of value and cite the source of the

definition;

Comment: Stating the definition of value also requires any comments needed to clearly indicate to the

intended users how the definition is being applied.

(vii) state the effective date of the appraisal and the date of the report;

Comment: The effective date of the appraisal establishes the context for the value opinion, while the

date of the report indicates whether the perspective of the appraiser on the market or property as of

the effective date of the appraisal was prospective, current, or retrospective.

(viii) summarize the scope of work used to develop the appraisal;

100

Comment: Because intended users’ reliance on an appraisal may be affected by the scope of work,

the report must enable them to be properly informed and not misled. Sufficient information includes

disclosure of research and analyses performed and might also include disclosure of research and

analyses not performed.

When any portion of the work involves significant business and/or intangible asset appraisal

assistance, the appraiser must summarize the extent of that assistance. The name(s) of those providing

the significant business and/or intangible asset appraisal assistance must be stated in the certification,

in accordance with Standards Rule 10-3.

101

(ix) summarize the information analyzed, the appraisal procedures followed, and the reasoning that

supports the analyses, opinions, and conclusions; exclusion of the market approach, asset-based

(cost) approach, or income approach must be explained;

Comment: An Appraisal Report must include sufficient information to indicate that the appraiser

complied with the requirements of STANDARD 9. The amount of detail required will vary with the

significance of the information to the appraisal.

99 See Advisory Opinion 36,

Identification and Disclosure of Client, Intended Use, and Intended Users

.

100 See Advisory Opinion 28,

Scope of Work Decision, Performance, and Disclosure

, and Advisory Opinion 29,

An Acceptable Scope of Work.

101 See Advisory Opinion 31

,

Assignments Involving More than One Appraiser

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