Table of Contents Table of Contents
Previous Page  72 / 77 Next Page
Information
Show Menu
Previous Page 72 / 77 Next Page
Page Background

USPAP 2018-2019 Edition

© The Appraisal Foundation

60

STANDARD 10

The appraiser must provide sufficient information to enable the client and intended users to

understand the rationale for the opinions and conclusions, including reconciliation in accordance with

Standards Rule 9-5.

(x)

clearly and conspicuously:

• state all extraordinary assumptions and hypothetical conditions; and

• state that their use might have affected the assignment results; and

(xi) include a signed certification in accordance with Standards Rule 10-3.

(b) The content of a Restricted Appraisal Report must be consistent with the intended use of the appraisal

and, at a minimum:

(i)

state the identity of the client, unless the client has specifically requested otherwise;

102

and state

a prominent use restriction that limits use of the report to the client and warns that the rationale

for how the appraiser arrived at the opinions and conclusions set forth in the report may not be

understood properly without additional information in the appraiser’s workfile;

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.

The Restricted Appraisal Report is for client use only. Before entering into an agreement, the appraiser

should establish with the client the situations where this type of report is to be used and should ensure

that the client understands the restricted utility of the Restricted Appraisal Report.

(ii)

state the intended use of the appraisal;

103

Comment: The intended use of the appraisal must be consistent with the limitation on use of the

Restricted Appraisal Report option in this Standards Rule (i.e. client use only).

(iii) state 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) of value and the premise of value, and cite the source of its definition;

(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) state the scope of work used to develop the appraisal;

104

102 See Advisory Opinion 36,

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

.

103 See Advisory Opinion 36,

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

.

104 See Advisory Opinion 28,

Scope of Work Decision, Performance, and Disclosure

and Advisory Opinion 29,

An Acceptable Scope of Work.

1937

1938

1939

1940

1941

1942

1943

1944

1945

1946

1947

1948

1949

1950

1951

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973