Expert Valuation Research Articles

Proposal of Legal Status of the Expert Valuation Institute Objectifying the Acquisition Process

The process of procuring military equipment, technology, material, and associated services (VM) is frequently shrouded in concerns about cost-effectiveness and, in some instances, even becomes the focus of law enforcement investigations. This often leads to delays in strategic investments and exposes involved individuals to the risk of criminal charges. Additionally, there is a notable lack of capacity to impartially evaluate the overall investment's efficacy. Consequently, the "Znalec" (Expert Witness) project was initiated as a part of the defense research program. Its objective is to explore the feasibility of establishing an expert institute that could impartially assess the value of the military procurements, set a standard for evaluating these assets, and outline a training program for relevant experts. This paper specifically addresses the first objective of the project, proposing a legal framework for the expert institute based on an extensive systems analysis.

Evaluating College Students' Comprehensive Quality by the AHP Algorithm.

For the full rank of appraisement, college students act a central party in the instructive fabric of colleges and universities. The common attribute teaching should settle the reciprocal expert valuation agreeing to the specifying goals of training. Establishing a practical and energetic system for appraising the extensive rank of college students is a topical valuable for investigation. This writing confers a mandate supported on Analytic Hierarchy Process (AHP) to exactly rank the compendious degree, college students, frame estimation indicators, calculative crushing, and generate rising wherefore to distinct mayor leagues. Taking the full attribute valuation of electronic computer greater combine, a college as a represent, the import and implementation of this precept are utter details. Through the analysis of the passable state of the thorough nature appraisement, college students, alluring Taiyuan University of Science and Technology as an instance, a large property valuation dummy was established with the assistance of analytic hierarchy outgrowth. A reasonable valuation of students foresees a notional base.

ТЕОРЕТИЧНЕ ПІДҐРУНТЯ МЕТОДИК ВСТАНОВЛЕННЯ НЕВИЗНАЧЕНОСТІ РЕЗУЛЬТАТІВ ЕКОНОМІЧНИХ ВИМІРЮВАНЬ, ЗДІЙСНЮВАНИХ МЕТОДАМИ НЕЗАЛЕЖНОЇ ЕКСПЕРТНОЇ ОЦІНКИ

The article behaves to the field of assets and property rights independent expert appraising/valuation. Theoretical bases, on those economic measurements expert valuation results uncertainty degree methodology is based, are examined. The substantiation of the probabilistic-metrological approach methodology principles to evaluation results uncertainty degree quantitative determination, based on the evaluation result interval form presentation, is considered. The requirements of national and international evaluation standards for the evaluation results uncertainty are analyzed. The methodology of evaluation results accuracy objective quantitative indexes is described and performed. It is well-proven that the level of valuation results errors at economic measurements implementation can be set on the basis of information theory and measurement errors theory laws application. It is shown that in the case of Comparative Sales and Income approaches applying, uncertainties for given levels of confidence probability in the form of numerical values of the confidence interval limits can be established on the basis of similar property adjusted single unit value indicators or rental rate rows statistical processing. The conditions that must be met when these economic measurements performing are formulated. The main principles of the economic measurements implementation using the metrological methodical approach are considered. It is grounded on independent valuation results uncertainty degree quantitative determination on the basis of economic measurements series implementation with next results row statistical processing. Base terms, limitations, original assumptions of that evaluation works accuracy conditions are set. Possible directions of evaluation methodologies further improvement are analyzed. Attention is accented on the informative-metrological approach to valuation results uncertainty degree exposure. It is shown that it gives an opportunity to set the valuation uncertainty degree by objective quantitative indexes, as these results errors estimates. Some recommendations in relation to priority directions of further researches are offered.

Inscriptions of resilience: Bond ratings and the government of climate risk in Greater Miami, Florida

In recent years, credit rating agencies have begun to incorporate a municipality's resilience and vulnerability to climate change into their US municipal bond rating methods. Drawing on the case of Greater Miami resilience planning and Science and Technology Studies-inspired work on inscriptive devices, I investigate how this incorporation practically happens, and how it shapes the ways that Greater Miami governments attempt to govern climate risk through resilience investments. What “counts” as resilience there, I suggest, is increasingly an effect of the observational practices of rating agencies. However, the still-emergent status of resilience as an object of knowledge among rating agencies and Greater Miami governments means that resilience retains a degree of plasticity, allowing government officials and residents alike to mobilize the term for different purposes and toward different ends. In tracing the emergent relations between rating agency practice on climate risk and local government resilience investments, the paper makes two contributions to scholarship in economic and urban geography. First, it illuminates the ways that extra-local practices of expert valuation shape the local construction of environmental fixes. Second, it offers insights into how one of the key actors of the 2007–2008 financial crisis is beginning to lay the epistemic groundwork for future economic crises and inequalities in and between cities, this time as they relate to climate change impacts and a city's supposed resilience and vulnerability to them.

Valuation Issues in the UK Restructuring Plan

The newly enacted restructuring plan under Part 26A of the Companies Act 2006 represents one of the key pieces of reform introduced by the Corporate Insolvency and Governance Act 2020. Central to the restructuring plan, which is modelled after the English scheme of arrangement, is the introduction of a new cross-class cramdown mechanism and a new ‘genuine economic interest’ principle, both of which are intended to facilitate restructurings by preventing out-of-the-money creditors from holding up a restructuring plan. Their introduction will invariably raise disputes over the enterprise value of the debtor company, a subject area which remains relatively underexplored in English restructuring law. Where a going concern valuation of the debtor company is found to be appropriate, how should such a valuation be conducted? This article explores two potential options: first, an expert valuation approach as adopted in the US which is reliant on expert evidence and, second, a market testing approach which entails the conduct of an auction or a similar sales process to value the debtor company. It considers recent empirical evidence in the US which casts doubt on criticisms of the expert valuation approach raised by English academics and notes certain potential disadvantages of a market testing approach.

Ecosystem Services of Vegetation Features as the Multifunction Anti-Erosion Measures in the Czech Republic in 2019 and Its 30-Year Prediction

The communication presents the pieces of information of the ecosystem services estimation of the four research localities transformed from an arable land to vegetation features—bosks. These bosks should dispose several ecological functions, primarily anti-erosion measures, additionally the local biodiversity increase, unfavorable microclimate mitigation, shelter provision for small game, birds and insects, or wood and fruit production, etc. One of these benefits, the biodiversity increase, can be evaluated using the Habitat Valuation Method (HVM) and expressed by the financial value obtained on the basis of a combination of expert valuation and cost replacement method. The various combinations of local woody plants and bushes within the project Multifunction anti-erosion measures as a part of adaptable landscape were planted or sown at the project localities (South Moravia and Žďárské vrchy, Czech Republic) in March 2019. Ecosystem services evaluation was one of the fundamental outcomes of the project. The most important result was the calculated value increase of the service termed “environment for the species life providing and genetic diversity conserving”. The increase means the difference between the state prior to planting and the expected target state after 30 years as specified in HVM. In total, the increase of this ecosystem service of the four bosks was valued at 2,633,809.64 CZK (97,206.48 EUR/114,399.06 USD).

The Exit Theory of Judicial Appraisal

For many years, we and other commentators have observed the problem with allowing judges wide discretion to fashion appraisal awards to dissenting shareholders on the basis of widely divergent, expert valuation evidence submitted by the litigating parties. The results of this discretionary approach to valuation have been to make appraisal litigation less predictable and therefore more costly and likely. While this has been beneficial to professionals who profit from corporate valuation litigation, it has been harmful to shareholders, making deals costlier and less likely to complete. In this Article, we propose to end the problem of discretionary judicial valuation by tracing the origins of the appraisal remedy and demonstrate that its true purpose has always been to protect the exit rights of minority shareholders when a cash exit is otherwise unavailable, and not to judge the value of the deal. While such reform would be costly to valuation litigation professionals, their loss would be more than offset by the benefit of such reforms to shareholders involved in future corporate transactions. Shareholders presently have adequate protections, both from private arrangements and legal doctrines involving fiduciary duties.

Sustainability and Immateriality - Motivations of users/consumers as drivers of sustainability

At present, it is necessary to analyse how users/consumers perceive sustainability, in order to determine the characteristics, aspects, attributes, etc. that, according to their criteria, must have sustainable products, services and product-service systems (hereinafter SPS). This can be used to identify new approaches to sustainability or to assess whether the current model is adequate, to see whether society's concept of sustainability should be rethought or maintained. The purpose of this study is to analyse, from the point of view of some experts, whether the proposed motivations of users/consumers are related to sustainability; since it is considered that the study of collective actions from the emotions can become a conscious motivating motor that would have the purpose of transforming a reality, in this case, the relation between users/consumers and sustainability. The present analysis is the result of previous research (Rivera et al (2015), Rivera & Hernandis (2016) y Rivera-Pedroza (2017)) in which another type of complementary needs of people as users/consumers of products and services are recognized, to investigate how diverse motivations and aspirations, which are not only basic needs, are aspirations or motivations that can be given in terms of sustainability. The research is carried out on the basis of an instrument that could capture the opinion of individual experts on the subject, to achieve the validity of experts or face validity; (Sampieri, Collado, & Lucio, 2010), according to qualified voices. In this regard, the instrument contains eleven drivers based on motivations (needs, emotions, values) belonging to an immaterial context of sustainability in products/services, seeking the expert's valuation, but with a user role; on motivations generating alternative approaches to sustainability in products and services. The analysis of these motivations, within the current context, provides value in the analysis of the behaviours of people involved in the environmental social movements within the emerging design and sustainability scenarios.

Sustainability and Immateriality - Motivations of users/consumers as drivers of sustainability

At present, it is necessary to analyse how users/consumers perceive sustainability, in order to determine the characteristics, aspects, attributes, etc. that, according to their criteria, must have sustainable products, services and product-service systems (hereinafter SPS). This can be used to identify new approaches to sustainability or to assess whether the current model is adequate, to see whether society's concept of sustainability should be rethought or maintained. The purpose of this study is to analyse, from the point of view of some experts, whether the proposed motivations of users/consumers are related to sustainability; since it is considered that the study of collective actions from the emotions can become a conscious motivating motor that would have the purpose of transforming a reality, in this case, the relation between users/consumers and sustainability. The present analysis is the result of previous research (Rivera et al (2015), Rivera & Hernándis (2016) y Rivera-Pedroza (2017)) in which another type of complementary needs of people as users/consumers of products and services are recognized, to investigate how diverse motivations and aspirations, which are not only basic needs, are aspirations or motivations that can be given in terms of sustainability. The research is carried out on the basis of an instrument that could capture the opinion of individual experts on the subject, to achieve the validity of experts or "face validity"; (Sampieri, Collado, & Lucio, 2010), according to "qualified voices". In this regard, the instrument contains eleven drivers based on motivations (needs, emotions, values) belonging to an immaterial context of sustainability in products/services, seeking the expert's valuation, but with a "user role"; on motivations generating alternative approaches to sustainability in products and services. The analysis of these motivations, within the current context, provides value in the analysis of the behaviours of people involved in the environmental social movements within the emerging design and sustainability scenarios.

Quality of Independent Expert Reports Used in Australian Takeovers

In this article, the authors investigate whether there has been an improvement in the quality of independent expert reports following ASIC's revisions to RG111 and RG112. These revisions include additional disclosures on the valuation methodologies used and explanation if the valuation was materially different from the company's recent trading price. It was expected that these revisions have led to an improvement in report quality where quality is determined by the accuracy of the expert's valuation. Results show that after the 2011 revisions, valuations became more accurate based on updated measures of report quality. However, experts with higher fees did not provide higher quality reports on average. The findings indicate that the independence provisions within the new rules were effective. Furthermore, they warn commissioning firms that higher fees are not necessarily indicative of higher quality reports.

The Role of Pricing in Taxation of Business Enterprises

The problem of pricing is elaborated with respect to setting the tax base for calculating tax obligations (taxes and duties) assessed and paid by business enterprises by the general tax system. The role of the regular market price when calculating the tax base for national taxes (profit tax, value added tax, excise tax and tax on incomes of physical persons) is highlighted.
 It is shown that valuation of assets (property rights) is the process of estimating their cost on the date of valuation by the established procedure. The valuation can be performed by entities charged with valuation (legal entities, physical persons – entrepreneurs, state power bodies or local power bodies). Subject to valuation are assets (movable and immovable) and property rights (e. g. intellectual property rights, rights for use of nature resources etc.). The cases of obligatory expert valuation of assets are clarified in the course of the study; the valuation phases are substantiated in conformity to the national standards on valuation of assets and property rights.
 The notion of transfer pricing, occurring in time of transactions involving residents and non-residents that are subject to control by tax bodies in order to combat minimization of income tax, is defined. Economic transactions with a non-resident counterparty are identified as controlled ones by a payer of profit tax, when their result has no effect for a taxation object. An economic transaction will be identified as a controlled one, when it complies with two criteria set by the Tax Code of Ukraine: cost criterion (the volume of annual income and the volume of transactions with a counterparty) and status criterion (what is non-resident, whether or not it is related with a Ukrainian tax payer, where it is registered, what is its organizational and legal form, whether or not it pays profit tax and by what rate). The controlled transactions are subject to audit for the compliance of their prices with “arm’s length” principles, with the possibility of adjusting a transaction price for purposes of profit taxation in case of noncompliance. 
 International and national law establishes five main methods for price determination in the controlled transactions. The choice of method and texted party depends on the essence of transaction and the character of its parties’ interactions. The article gives a description of methods for calculating transfer prices used by tax bodies for auditing the correctness of estimated profit tax in the controlled transactions. The authors believe that the top one is the method of comparative non-controlled price, because it can be used when performing transactions on sales of goods with mass-scale demand, for which it is easier to find the data on analogous transactions of other companies on the commodity market and compare the conditions of such economic transactions.

Authentic assessment instruments for performance in mathematics learning in elementary schools

Products in the form of assessment instruments are packed in book form. Guidance on the use of authentic assessment instruments of the performance of elementary school students that contain; 1) assessment purpose; 2) the division of the syllabus; 3) lattice; 4) observation sheet; 5) rubric. This research is an R & D development model using Borg and Gall analysis that modifies researchers into three stages including: (1) introduction; (2) product development (development); (3) Presentation of product development result. Research subjects at SD Nurrusshidiq city Cirebon and SDN Karanganyar Cirebon City. Validity uses expert validation from four assessors with expert valuation techniques. Performance assessment comes from three evaluation experts, a mathematical instrument and one senior math teacher. (1) An overview of existing instruments in Cirebon Elementary School in Mathematics learning is that teachers still use the description of the tests in the classroom assessment process. (2) The stage of development of this study consists of the initial stage that contains the needs analysis, grid making, the manufacture of performance appraisal instruments, development stage consisting of expert validity test, small-scale test, and stage presentation consisting of large-scale experiments and test the practicality of the instrument. (3) Experimental results of the assessment.

Znalecké ocenění, squeeze-out a Ústavní soud ČR

Znalecké ocenění, squeeze-out a Ústavní soud ČR

Economic Category of 'Value' in Criminal Law and Forensic Science

The main provisions of Criminal Law relating to the economic category of ‘value’ are discussed in the article. Text analysis of the Criminal Code of the Russian Federation indicates the need for a uniform understanding of this category, regardless of the criminal law. During the investigation and trial of many types of crimes appraisement is signifcant and needs a deeper comprehension. While appointment, production and evaluation of forensic examinations, the resolution of which raises the question of valuation, inevitable complications arise due to the intricacy of determining the content of the specialized knowledge necessary for their implementation. The main provisions of Criminal Law relating to the economic category of ‘value’ as well as the interpretations of the Supreme Court of the Russian Federation concerning value determination in the Criminal Law are discussed in the article. The inadmissibility of forensic appraisal examinations appointment and conduct is justifed, since the goals and norms of the legislation on appraisal and appraisal activities do not always correspond to the tasks and methods of forensic expert valuation of goods, services, cultural values. The necessity of development of new and improvement of existing forensic expert valuation methods in the framework of such examinations as forensic product examination, forensic economics, construction forensic etc. is presented.

Основні питання оцінки вартості сільськогосподарського підприємства

Purpose. The purpose of this article is to determine the range of problems that an appraiser faces during the process of the agricultural business valuation and outline ways of their further solution. Methodology / approach. To achieve the purpose, the following methods were used: scientific abstraction, method of analysis and synthesis, method of analogy and comparisons. Results. The valuation of agricultural property is important for strategic planning of the enterprise activity and helps in making key decisions. Properly performed business valuation procedure can increase the enterprise’s value, its investment attractiveness. Agricultural enterprises have a number of peculiarities that do not allow full application of the whole range of methodological approaches and methods used for the evaluation of other business types. The study of economic land valuation methods (on the basis of which a monetary expert valuation is carried out) have shown that in modern market conditions, they need to be improved. Since there are no National Standards for Agricultural Property Valuation in Ukraine, there is a discrepancy between European and Ukrainian terminology of agricultural property valuation when applying to foreign experience. The notions of «agrarian property» and «agricultural property» differ significantly. The main problems of evaluation of agricultural property in the form of an integral property complex are caused by the peculiarities of agricultural business: fluctuations in prices for agricultural products and raw materials, imbalances between supply and demand, the difficulty in substantiating the discount rate and a long-term forecast of cash flows, the absence of a stock market of agricultural enterprises in Ukraine. Originality / scientific novelty. In this article, the classification of problems that arise during the procedure of agricultural property valuation: in the material form and in the form of an integral property complex is proposed for the first time. The justification for the inadmissibility of using generally accepted methodological approaches for the valuation of agricultural real estate and business was further developed. Practical value / implications. The practical value of this article is that the theoretical generalizations obtained by the author will contribute to the formation of a system for assessing the value of agricultural enterprises as one of the elements of the investment market, as well as, could be used in practice, in assessing the value of these enterprises for investing purposes.

Використання статистичних методів для створення когнітивних тестових завдань

Подано означення тесту, складності тестового завдання, валідності, дискримінативності та надійності тестових завдань. Обґрунтовано необхідність проходження тестовими завданнями процесу спеціального оцінювання з використанням елементів математичної статистики. Розглянуто два основні підходи до створення тестів та головне питання теорії тестів – побудова оптимального тесту. Подано математичну постановку задачі створення і аналізу тестових завдань. На конкретних результатах тестових завдань розглянуто методику розрахунку тестових характеристик. Складність тестових завдань розкрито на підстаі емпіричної перевірки завдань, з підрахунком частки правильних відповідей, за відомими формулами розраховано коефіцієнти варіації та дисперсії. Зроблено оцінку валідності з використанням значущого зовнішнього критерію – експертної оцінки. Подано таблицю критеріїв для інтерпретації значення коефіцієнта валідності, щоб унеможливити створення неякісних тестових завдань. Для обчислення коефіцієнта дискримінативності застосовано метод крайніх груп, подано критерії інтерпретації значення коефіцієнта дискримінативності, розроблено конкретні рекомендації для створення тестових завдань з належним значенням коефіцієнта дискримінативності. Розглянуто два види надійності тестів: надійність як стійкість і надійність як внутрішню погодженість. Для визначення значення надійності як стійкості застосовано перетворений коефіцієнт кореляції Пірсона "фі" для дихотомічних даних. Наведено результати проведених розрахунків значення коефіцієнта надійності як внутрішньої погодженості вирахуваного за формулою Спірмена-Брауна з використанням формули Пірсона. Подано таблицю критеріїв для інтерпретації значення коефіцієнта надійності, використано метод Кьюдера-Річардсона як метод розщеплення тесту для оцінки надійності дихотомічних завдань тестів. Наведено інтерпретацію результатів та вироблення спрощених загальних рекомендацій укладачам, котрі можна застосовувати в тестологічній практиці.

Psychological factors influence on energy efficiency in households

Research background: Most of the studies and their authors focus on the social and eco-nomic impacts of energy-saving behavior. However, they do not focus on the psychological factors affecting the efficiency of energy consumption in households. Lithuania has a lack of a unified and justified opinion on psychological factors that affect the energy efficiency of households.
 Purpose of the article: The main objective of the article is to identify the psychological factors that influence energy efficiency in households and to identify the appropriate measures to change the individual?s energy consumption behavior.
 Methods: The article was based on analysis of scientific literature and expert evaluation, when experts selected the most influencing psychological factors. Expert valuation allowed to set the right conditions in which individuals are more easily assimilated by means of energy saving.
 Findings: In most cases, economic and technological factors significantly influence household energy consumption. Increased energy-efficient equipment production and supply is causing an energy consumption growth in households, because they are more inclined to buy and use more efficient electrical equipment. An investigation has showed that the energy consumption is strongly influenced by some cultural and psychological factors: with greater public openness to innovation, the households tend to use energy more efficiently. Also, some psychological indicators have significant impact on energy consumption has ? frequently the more pronounced neuroticism or extraversion rate. Since the research was performed only in Lithuania, in the future it will seek to carry out an investigation in several countries and to compare a various factors on the proposed measures and the efficiency of household energy consumption.

The Improvements of Enterprise Anti-Crisis Management Diagnostics in the System of Managerial Diagnostics

The purpose of the article is to substantiate the theoretical positions and to develop practical recommendations for improving the diagnostics of anti-crisis management of the enterprise in the system of managerial diagnostics. It is revealed that the specificity of crisis management of the enterprise (as a special diagnostic purpose of the system of management diagnostic purposes) is related to: 1) the strategy of anti-crisis management, which includes the prevention of crisis and the strategy to overcome the crisis; 2) the need for complex management decisions (functioning, development) in the conditions of limited financial and informational resources, high general level of uncertainty of the environment (displaying various events and aspects) and risk, etc. It is established that the diagnostics of anti-crisis management in the enterprise in the system of managerial diagnostics should include: 1) the study of basic business indicators (parameters) of production and economic activity of the enterprise; 2) comprehensive in-depth analysis of the influence of factors (internal, external) on the state of the enterprise (financial and economic, technical and technological); 3) expert valuation of the developed measures and prospects for financial rehabilitation and preventive sanation, as well as an assessment of the achievement of forecasting goals. The prospect of further research in this field is the development of a system of goals of economic diagnosis (diagnostics of activity) of the enterprise (institution, organization) taking into account the presented results of the study and the graphical interpretation of the improvement of the effectiveness of the anti-crisis management enterprise in the system of managerial diagnostics.

The impact of deferred tax on company valuations in the case of mergers

The impact of deferred tax on company valuations in the case of mergers The aim of the paper is to fill the gap in the literature related to the disclosure of relevant deferred tax value in accounting under a merger in relation to the valuation of the participating companies. Apart from a description, methods of analysis, synthesis, and comparison are used in this paper as well. The model example shows possible methods of accounting solutions and their influence on the value of assets with a different approach to this solution. Non-disclosure of deferred tax in the opening balance sheet could have a negative impact on the economic decision-making of the acquiring company. The aim of this paper is also to raise the debate at the international level about the extent to which deferred tax should be reflected in the expert valuation of companies or whether it is a purely accounting problem.

French Insurance and Flood Risk: Assessing the Impact of Prevention Through the Rating of Action Programs for Flood Prevention

French insurance is part of a public–private partnership with the French State to compensate flood-related damages, and there is growing concern among insurers about damaging climatic events. To promote preventive actions as well as to take them into account in flood risk assessment, insurers have recently expressed the need to develop a rating system of preventive actions. This study identified Action Programs for Flood Prevention (Programme d’Action pour la Prévention des Inondations—PAPI) as the key French public policy instrument: they provide an overview of the diversity of actions that are conducted locally at the relevant risk basin scale. A database of all intended actions in the 145 launched PAPIs was constructed and the actions were coded (88 codes). The analysis consisted of two steps: (1) We conducted an expert valuation using the Analytic Network Process and the Analytic Hierarchy Process, aiming at creating an experimental national rating system. The results show the importance of implementing an integrated strategy that particularly emphasizes land use planning and urban planning. This appears even sounder as individual actions show relatively limited effectiveness. (2) The ratings of actions were applied to each PAPI according to their implemented actions. The resulting scores for individual PAPIs, as local risk coping capacity indicators, show great variance ranging from 8 to 324 points. This confirms the need to take prevention into account in flood risk assessment.