When it comes to purchase of property or securities by an entity, it is important to know the estimate value of the asset planned to be invested upon. A report template showing information on the evaluation and the market price of the inspected asset is a valuation report. This report may have similar formats with a Monthly Report with regard to projections and assessment but it is made for a different purpose and time frame.
Valuation Report Template
Property Valuation Report Template
The Report Format, as shown on the sample templates, presents information on the asset being valued and the valuation methods being applied in consideration of the conditions of the market.
Immovable Property Valuation
Land Assets Valuation
Purposes of Valuation Reports
Businesses have different reasons for valuation of assets. The following are common purposes:
- Managing portfolios. Investors engage in trading securities in the market. Knowing the current value of the stocks owned by the entity generated by financial statements such as the presented Financial Report Templates will help decisions regarding the buying and selling of the stocks.
- Acquiring assets. Whether the acquisition is of a suffering company or of a property for expansion, a valuation report templates is needed to know how much value will be added to the current value of the entity along with the advantages and disadvantages of the merger or purchase.
- Legal and tax reasons. Every step of the company is to be made in accordance with the law. A valuation report is needed in the process of these legal means.
Writing a Valuation Report
The following essential key components are included in a valuation report:
- Valuation Purpose. It is important to identify the reason for the valuation of the asset.
- Date of valuation and issuance. Specify the date the valuation is effective and the date the report is to be submitted. This serves as basis for the duration the asset is to be valued.
- Asset description. Present in detail information on the asset undergoing valuation.
- Data analysis. Analyses that will aid in valuation comes from financial and business reports as presented on the sample Business Report Templates.
- Method of valuation. The different valuation approaches used in valuing the asset is presented.
Summary of a Valuation Report
At the start of the report, a summary report is made with inclusion of the following:
- Standard value. This includes the various conditions as to how the business or the asset is valued. In consideration of the purpose of valuation, the standard value can be identified as fair value, investment value, or intrinsic value.
- Premises of value. Discussion on the assumptions and limiting conditions of the entity in valuation is presented on the summary. An example of an assumption of an entity is going concern. Valuation is made considering that the company will continue to be an operating business enterprise.
- Marketing conditions. The market is always given consideration when it comes to valuation of assets such as securities. It is important to state these conditions at the start of the report to aid in processing the valuation report.
Templates like Daily Report Templates aid employees in generating daily company reports. Similarly, valuation of assets and securities is an essential factor in decisions regarding investments and trade. Thus, a good valuation report showing all the needed information will effectively aid stakeholders such as investors and management in dealing with portfolio management, acquisition, and legal usage of the business entity.