Standards for assessing the state property
In Tajikistan, the legal basis for relations for assessment and determination of market and other values of the assets is regulated by the× Republic of Tajikistan Law on ‘Valuation Activities’. According to this× Law, this assessment activity is considered as income-generation activity which is conducted by subjects of assessment activity in order to determine the market value of objects or other values of valuation for the specified date.
Assessor is an individual or legal body who has a permit for the implementation of assessment activities.
Contractor is an individual or legal body who uses the services of an assessor.
The basic principles that guide the assessors’ activity are impartiality, objectivity, credibility, competency and transparency.
There are several types of appraisal:
- Mandatory and voluntary assessment.
Mandatory assessment is carried in the following cases:
- determination of value of the object before privatization, leasing or handing over the object to trust management;
- sale or other types of disposition;
- transfer of assets for credit debts;
- transfer of assets as a form of share o the capital of the legal entity, including legal entities with foreign investment;
- determination of the initial value of assessing objects for the auctions and tenders;
- determination of the amount of rent in signing a lease contracts for the objects which are considered the state property;
- determination of the damage of the insured civil rights objects in the event of an accidents under mandatory insurance;
- in case of disputes over the value of the assessed object, including the nationalization of property;
- in case of disputes over the amount of the price of the pledged object (mortgage), in the case of credit transactions of individuals and legal persons by the laying of real estate (mortgage).
- development of marriage contracts and distribution of property between the divorcing husband and wife at the request of one party or both parties in case of a dispute about the value of the property;
- In the case of tenders for the state needs;
- In case of confiscation of the property by the state on the basis of the laws of the× Republic of Tajikistan;
- In assessing properties to measure the actual amount of tax, in case of dispute on the calculation of tax base;
The voluntary assessment of objects is conducted solely on the request of the contractor to assess the value of property and separate assessment is done for each object.
The price of all types of public property, which are to be privatized or leased with subsequent purchase, are determined within the framework of the×Regulation for valuation of state property for privatization. The initial price of enterprises, as a complex of properties and the price for a unit, is solely determined on the basis of the balance sheet of the enterprise and attached complete list of the fixed assets (such as buildings, objects, moving funds, equipments, computers, vehicles). The balance of the company approved by the tax agency and a complete list of the fixed assets at the date of the decree on privatization of the enterprises are transferred to the State Unitary Valuation Enterprise or any other licensed company authorized to run such activities.
Calculation of initial value of the enterprise property is measured by residual value by reducing balance sheet value proportionally to deterioration value recorded in accounting records, and are carried out with consideration of level of depreciation and period of use, which changed according to the increase in prices of assets.
The assets under construction and the properties with uninstalled equipment are assessed after stock-take in accordance with the balance price (without using the coefficient of determination of balance sheet replacement value).
All other assets from 100% depreciation to 100% are assessed with consideration of the book replacement value.
The initial price for the package of government shares is defined in mandatory order on the basis of the balance sheet data filled during the last reporting date before making decisions about placement of the share for the sale, with attachment of the complete list of assets (buildings, facilities, transmission equipment, machinery and equipment, computers, vehicles). The approved by the tax agency balance sheet and a complete list of fixed assets are provided by the companies to the state unitary valuation enterprise on the day of adoption the decision on privatization.
The total value of the joint-stock company shares is calculated in the following way:
AVS = A - POL - PSA, that is:
AVS – assesses value of the shares,
A - assets of joint-stock company
ROL - payments and other liabilities
PSA – price of the social assets
The final cost of state property is defined in the auction and tender and may be more or less the final cost. The foundation for valuation can be an×Agreement signed between the× Assessor and the Contractor.
According to the× Agreement, the assessor should provide assessment services to measure the market value of the property or other values and the×Contractor agrees to pay the service fee.
Preparation of timely and written report is a prerequisite for the fulfillment of obligations of the× Assessor set forth by the× Agreement.
Assessment report should be straightforward and should not present misleading facts.
An Assessor has a right to:
- deploy own assessment methods used for valuation of objects and the ones specified in the unified system for valuation;
- In the case of mandatory valuation of the assessed objects, an× Assessor should require the access to the data needed to conduct the assessment.