International Valuation Standards Research Articles

Property Valuation in Latvia and Brazil: A Multifaceted Approach Integrating Algorithm, Geographic Information System, Fuzzy Logic, and Civil Engineering Insights

This study aimed to predict residential apartment prices in Latvia and Brazil using algorithms from machine learning, fuzzy logic, and civil engineering principles, with a focus on overcoming multicollinearity challenges. To explore the market dynamics, we conducted four initial experiments in the central regions of Riga and Jelgava (Latvia), as well as São Paulo and Niterói (Brazil). Data were collected from real estate advertisements, supplemented by civil engineering inspections, and analyzed following international valuation standards. The research integrated human decision-making behavior with machine learning and the Apriori algorithm. Our methodology followed five key stages: data collection, data preparation for association rule mining, the generation of association rules, fuzzy logic analysis, and the interpretation of model accuracy. The proposed method achieved a mean absolute percentage error (MAPE) that ranged from 5% to 7%, indicating strong alignment with market trends. These findings offer valuable insights for decision making in urban development, particularly in optimizing renovation priorities and promoting sustainable growth.

Valuation of cyclical assets and exit value

PurposeOrdinary direct capitalization is normally considered procyclical in its present form (De Lisle Grissom, 2011); for this reason, an alternative approach to direct capitalization may be useful in the determination of a robust opinion of value. The valuation standards propose an alternative determination of terminal value in the discounted cash flow analysis, recommending that for cyclical assets, the terminal value should consider … “the cyclical nature of the asset and should not be performed in a way that assumes “peak” or “trough” levels of cash flows in perpetuity” (IVS 105 Valuation Approaches and Methods para 50.21 lett e).Design/methodology/approachThe introduction in International Valuation Standards (IVS) of Cyclical Assets raises several questions for the community of real estate professionals and academicians (IVS, 2022, 105 Valuation Approaches and Methods para 50.09 lett d). Cyclical assets can be defined as property whose value is “influenced by upturn and downturn of the market in a significant way” (d’Amato et al., 2019).FindingsThe paper proposes different solutions to the problem. The determination of the exit value using cyclical capitalization allows for a prudent assessment of the value and may be used either as a valuation procedure or a risk analysis method.Research limitations/implicationsThe valuation comparison with the traditional valuation techniques will be based on an iteration of exit value in order to determine the effects of the valuation procedure on the opinion of value.Practical implicationsThe implication of the valuation procedure is the introduction of a countercyclical valuation method to determine the exit value in order to reach stable and reliable valuations for income-producing properties.Social implicationsThese models may have a social implication, providing valuation for income-producing properties that may deal with the property market cycle in a more efficient way, providing efficient valuation for banks and institutions.Originality/valueThe paper is the first application of such a valuation procedure to the determination of exit value.

LAND VALUE ASSESSMENT METHODS AND THEIR INFLUENCE ON THE MARKET PRICE OF LAND PLOTS

The paper analyzes the land market, which is part of the wider property market sector, focusing on the many factors that determine its dynamics and complexity. It was determined that the main drivers of land value are geographical location, economic conditions, legislative regulation, political stability, infrastructure and development prospects of the territory. The location of land plots in urbanized or strategically important locations significantly increases their value due to high demand, while plots in remote or less developed areas have a lower value. The article examines the impact of the economic climate, where during periods of economic growth the demand for land increases, leading to higher prices, while economic downturns can lead to lower prices. Land laws, tax policies, and land use regulations are key regulatory factors that have a significant impact on market value. Further prospects for the development of the area, such as plans for the construction of new residential complexes or commercial centers, can also significantly increase the value of land plots. It is noted that according to the International Valuation Standards, the market value is considered as the amount of money for which the property could be transferred as a result of a commercial agreement between knowledgeable and independent parties. The article emphasizes the importance of an integrated approach to the analysis of the land market, which includes the assessment of all potential factors affecting pricing, including the size of the plot and its specific purpose, which determine its market attractiveness and value. The use of combined evaluation methods, such as comparative, profitable and cost, allows to obtain a more accurate assessment of the value of land plots, which is critical for investors, developers and policy decisions. The results of the study can be used by governments to evaluate and revise land legislation, which will contribute to more effective management of land resources. The importance of accurate land valuation for the implementation of successful land reforms that can help ensure the equitable use of land resources.

Mapping the International Valuation Standards ESG criteria and sustainability rating tools adopted at scale by the Australian commercial real estate market

PurposeThe proliferation of environmental rating tools over the past two decades has endeavoured to assist the industry in measuring sustainability. Recent changes to the International Valuation Standards (IVS) have directed valuers to consider ESG. The purpose of this study aims to examine how commonly utilized sustainability tools, which have been employed to communicate building sustainability credentials, align with the IVS categories of ESG.Design/methodology/approachThe research utilises the IVS categorisation of ESG and maps sustainability tools adopted at scale by the Australian Commercial Real Estate market. The approach identifies the various attributes within the commonly utilised rating tools that align with IVS defined ESG criteria.FindingsThe mapping provides insights into the coverage of the IVS ESG criteria in the mainstream tools used in Australia. Further, the research identifies existing sustainability criteria that are relevant to the built environment, that have not been clearly identified by the IVS, but have an important role in evaluating the sustainability of commercial real estate.Practical implicationsFor investors, occupiers and valuers, this research provides insights on how the current, commonly utilised sustainability rating tools align with the IVS-defined ESG metrics. This research assists in providing greater clarity regarding the relationship between ESG criteria and existing rating tools, which have been recently identified as key considerations in valuation practice and help to provide transparency and understanding for property stakeholders.Originality/valueThe importance of monitoring, reporting and enhancing transparency in ESG disclosures has emerged as a central issue with significant implications for the property industry. This research provides the first evaluation of how existing sustainability rating tools map against ESG criteria as directed in the IVS.

Bridging theory and practice: International valuation standards and asset valuation in the telecommunications sector

In the rapidly evolving telecommunications industry, accurate valuation of tangible assets remains a critical challenge that requires adherence to universally recognized standards. This study addresses the pressing need for transparent and precise asset valuation methodologies that are pivotal for informed investment decisions and financial reporting. It aims to bridge the theoretical and practical divide in asset valuation by applying International Valuation Standards (IVS) 300 and 400 to Asiacell Communications PJSC, a leading entity in the sector. Focusing on five key tangible assets from 2018 to 2022 – lands, buildings, plant and equipment, means of transport and transfer, and furniture and office equipment – the study employs the income approach, augmented by a random walk model for future cash flow forecasting and the weighted average cost of capital for discounting. This innovative methodology offers a comprehensive valuation framework, revealing that despite Asiacell’s consistent growth rate of 4.63%, all asset categories experienced a depreciation upon revaluation. The study’s findings underscore the significance of implementing IVS in elucidating the asset valuation process, demonstrating the potential discrepancies between book values and standards-based valuations. The application of IVS 300 and IVS 400 not only enhances the transparency and accuracy of asset valuation but also provides valuable insights into the contributions of tangible assets to future income within the prevailing market conditions. By offering a replicable model for asset valuation in dynamic industries, this study contributes to the broader discourse on financial reporting and investment analysis, setting a foundation for future exploration in the field.

La scuola estimativa italiana, gli International Valuation Standard (IVS) e il Codice delle valutazioni immobiliari: i problemi di natura metodologica e applicativa

In some Anglo-Saxon countries, such as Australia and the United States, initiatives have already emerged to promote standardized evaluation practices. However, in Italy, this process is still evolving. Since 1994, the International Valuation Standards Committee (IVSC) has been working on various documents to establish uniform evaluation practices globally. These International Valuation Standards (IVS) are gradually gaining recognition in Italy. Through the efforts of organizations like ABI, Tecnoborsa, the Revenue Agency, and professional associations, IVS are being integrated into evaluation practices for credit approval and public administration requirements.

From appraisal function to Automatic Valuation Method (AVM). The contribution of International Valuation Standards in modern appraisal methodologies

In the real estate appraisal, as well as for any other scientific discipline, there is a continuous development of knowledge with related theoretical and applicative evolution that takes place primarily on the doctrinal level. The discipline has been object of regulatory and technological improvement aimed at concretizing and defining theoretical principles and methodologies. The functions of value appraisal, formulated in the different procedures that fall within the Market Oriented Approach indicated by the International Valuation Standard, have undergone a process of evolution that has favoured the introduction of Automated Valuation Methods (AVM). This evolution process represents an improvement of the conventional appraisal models that have improved the techniques of data retrieval and data base access and certify the reliability of the models to build efficient evaluation processes and universally recognized. This article aims at reviewing the methodological evolution in relation to the national market approach that the estimation discipline has recorded in recent years by virtue of the drafting and adoption of the International Valuation Standards.

The Mortgage Lending Value (MLV): proposal for a new calculation procedure

The mortgage lending value (MLV) is a type of value different from the market value (MV). The MLV appraisal is normally required in loans secured by real estate (collateral) context. In Italy, this appraisal is often made in percentage terms or with subjective criteria that do not consider the reference principles also defined by the valuation standards. This paper, starting from the analysis of the German procedure to appraise the MLV, which is the first country to introduce the concept of a security value in the context of property valuations, aims to propose a more precise procedure than the German one by adopting calculation methodologies typical of the income approach which are based on the principles derived from the definition of mortgage lending value and from market trends. The case is made that the proposed methodology and calculation procedure provide a more objective method to appraise the MLV compared to the current ones, in accordance with both national and international valuation standards, and that it represents a useful tool in the professional field.

АКТУАЛЬНІ ПРОБЛЕМИ ВІДШКОДУВАННЯ УПУЩЕНОЇ ВИГОДИ

Background. The research is based on the necessity of addressing complex legal issues related to the compensation for lost profits, particularly those arising from conditions of a state of war. The relevance of such analysis is determined by the need to develop effective mechanisms for compensating lost profits and formulating practical recommendations for its recovery in conditions of legal instability. The aim of this study is to elucidate current approaches to understanding the concept of lost profits and to formulate strategies for addressing the issues of its compensation by determining the criteria for satisfying court requirements for its recovery. Methods. The article is grounded in the provisions of civil legislation of Ukraine and other countries, national and international judicial practice, legal doctrine, employing a comparative legal approach, formal-logical methods, as well as methods of analysis, deduction, and generalization. Results. The study examines the issues of proving and determining the extent of lost profits, analysing existing mechanisms for its compensation in conditions of a state of war due to armed aggression, hostilities, terrorist acts, and sabotage committed by the russian federation. Conclusions. The main problematic aspects regarding the procedure of compensation lost profits are highlighted, focusing in the conditions of such compensation. Emphasis is placed on the problem of proving the existence of elements of a civil offense in the actions of the perpetrator of the damage and the availability of proper, admissible, credible evidence for obtaining compensation for lost profits. It is determined that the assessment of damages suffered by the victims is carried out though analytical evaluation, standardized, independent assessment by appraisal entities recognized by the Law of Ukraine "On the Evaluation of Property, Property Rights, and Professional Evaluation Activities in Ukraine", adhering to national standards for property valuation and International Valuation Standards, taking into account the specifics defined by these General Principles and methodologies for assessing damages and losses. Analysing the experience of previous years, considering legislative novelties and subordinate normative legal acts, practical advice for compensating lost profits due to armed aggression by the russian federation is formed, and ways to obtain such compensation are proposed.

Appraising forced sale value by the method of short table market comparison approach

For International Valuation Standards (IVS) the estimate of the “forced sale” value implies a value judgment with reference to a degeneration of the market value basis, since “a forced sale” is a description of the situation in which the exchange takes place, not a distinct basis of value (IVS 2022, Par. 170.1).The paper illustrates a model that can be used to measure the difference between market value and forced sale value, as an aid to real estate valuations related to real estate executions. The proposed method is aimed at determining the difference between the estimated values and the final sales values obtained through the executive process, on the basis of the Short Table Market Comparison Approach (MCA). This method contributes more appropriately to the estimate of the value obtainable from the outcome of the enforcement process than arbitrary reductions in the market value. An application on a small sample of residential properties undergoing enforcement procedure highlights the possibility of using the Short Table MCA even with a limited number of comparables.

Valuation accuracy in the residential property markets in Minna and Abuja, Nigeria

PurposeThe rising concern for the accuracy of residential valuations in Nigeria has created the need for key stakeholders in the residential property markets in the study areas to know the level of accuracy of valuations in order to make rational residential property transactions, amongst other purposes.Design/methodology/approachA blend of descriptive and causal designs was adopted for the study. Data were collected via structured questionnaire administered to 179 estate surveying and valuation (ESV) firms in the study areas using census sampling technique. Analytical techniques such as median percentage error (PE), mean and relative importance index (RII) analysis were employed in the analysis of data collected for the study.FindingsThe study found that valuation accuracy is greater in the residential property market in Abuja than in Minna, with inappropriate valuation methodology as the most significant cause of valuation inaccuracy.Practical implicationsThe practical implication of this study is that a reliable databank should be established for the property market to provide credible transaction data for valuers to conduct accurate valuations in these cities. Strict enforcement of national and international valuation standards by the regulatory authorities as well as retraining of valuers on appropriate application of valuation approaches and methods are the recommended corrective measures.Originality/valueNo study has comparatively examined the accuracy of valuations in two extremely different residential property markets in the country using actual valuation and transaction prices.

Is Reviewing Valuations a Tool for Curtailment of Professional Opinions?: A Perspective of a Reviewer Based on Valuations for Secured Lending Purpose

This paper delves into the pivotal role of valuation reviews in mortgage lending, dispelling misconceptions prevalent among private practice valuers. Drawing on the International Valuation Standards Framework, the study emphasizes the importance of qualified and ethical valuers in producing credible reports. Leveraging the author's extensive experience in the state sector and as a valuation reviewer for leading banks, the paper provides insights into fourfold review techniques—Administrative (Compliance) Review, Desk Review, Field Review, and Technical Review. These techniques ensure the accuracy, appropriateness, and adherence to Generally Accepted Valuation Principles, as per International Valuation Standards. In addition, the paper explores the technical background of mortgage valuations, highlighting nine key principles followed by valuers and examining Sri Lanka Valuation Standard-07. This paper also includes ten compelling case studies, covering diverse scenarios such as legal principles, wasting assets, building limits, accuracy of calculations, and valuation challenges associated with cattle farms and apartment buildings under construction. The paper reinforces the crucial role of valuation reviews in maintaining the integrity of mortgage valuations and the inclusion of ten case studies adds practical insights, covering a spectrum of scenarios and reinforcing the argument for adherence to regulatory standards and client requirements.

Intra-Group IP Transfers Following International M&A Transactions – Challenges and Best Practice from a (Swiss) Transfer Pricing Perspective

The post-M&A transfer of intellectual property raises a number of challenging questions from a transfer pricing perspective. By means of a case study, the author illustrates the use of international valuation standards in the context of intellectual property and transfer pricing (fair value versus arm’s length principle) as well as the treatment of pricing premiums and milestone payments.

Přístupy a metody ocenění nehmotných aktiv - porovnání Směrnice OECD k převodním cenám a Mezinárodních oceňovacích standardů

Přístupy a metody ocenění nehmotných aktiv - porovnání Směrnice OECD k převodním cenám a Mezinárodních oceňovacích standardů

Examination of the valuation provisions of intangible assets within the framework of international valuation standards and Turkish financial reporting standards

Purpuse- In this study, the valuation provisions of intangible assets within the scope of TAS-38, BOBI-FRS Section 14, KUMI-FRS Section 12, IVS-210 were compared. Methodology- Content analysis method was used as a method in this study. Findings-As a result of the examination, it has been seen that BOBI FRS Section 14 and KUMI FRS Section 12 are largely compatible with the valuation of intangible assets, and they have a more cost-based approach in order to facilitate the businesses within the scope of these standard sets. In TAS 38, on the other hand, it has been determined that the situations requiring the determination of "Fair Value" are more than the others. In addition to these standards, the IVS 210 standard, which has additional provisions regarding intangible assets from the standards published by the IVSC “International Valuation Standards Council”, is also discussed in the study. It has been understood that “Market approach”, “Income approach” and “Cost approach” can be applied in determining the fair value of intangible assets within the framework of IVS 210. However, it has been observed that, depending on the structure of the intangible asset, the application of the "Market approach" and "Income approach" is primarily desired, while the cost approach is recommended to be applied in mandatory situations. Conclusion-As a result of the research, it has been seen that there are some differences between TMS38, BOBI FRS Section 14 and KÜMİ FRS Section 12. It has been determined that there are no valuation provisions in IDS 210, and the principles supporting the valuation are discussed. Keywords: Intangible assets, TMS-38, BOBI-FRS Section 14, KUMI-FRS Section 12, IVS-210 JEL Codes: M40,M41

СУЧАСНІ АСПЕКТИ ОЦІНЮВАННЯ ЗБИТКІВ СУБ’ЄКТІВ ГОСПОДАРЮВАННЯ В УКРАЇНІ

As a result of the study of the issues of assessing losses of business entities, it is established that the theoretical developments and methodological recommendations for their assessment developed in peacetime in Ukraine do not take into account the specifics of the consequences of military operations and need to be adapted to the present. The author reveals the ambiguity of the wording of the concept of "losses" in the economic and legal aspects in theory and regulatory and legislative documents. Attention is focused on the peculiarities of the methodological approach to substantiating the amount of damage from the consequences of hostilities and the need to take into account the chronology of events of losses and compensation. The author analyzes the approaches to the formation of damage components and the correlation between the amount of damage and compensation. The author systematizes the types of losses depending on the multifaceted characteristics and supplements them with due regard for the peculiarities of the current stage. The author clarifies the methodological recommendations for substantiating the parameters of the model for determining the amount of losses and lost profits, and for ensuring that the influence of the time factor is taken into account based on the current characteristics of the financial market. The information base of the study is the regulatory and legal documents and documents of the state authorities of Ukraine on the regulation of relations between the parties that have suffered losses and caused them through the commission of illegal actions. Official statistical data of the National Bank of Ukraine, provisions of the European Valuation Standards of The European Group of Valuers' Associations (TEGOVA), Global Valuation Standards of the Royal Institution of Chartered Surveyors (RICS), Uniform Standards of Professional Appraisal Practice (USPAP) and International Valuation Standards Council (IVSC), which allowed to summarize the current trends in valuation. The classification of losses has been supplemented with consideration of specific characteristics and peculiarities of quantitative assessment to reflect the nature of manifestation, time of occurrence, mechanism of influence, recovery opportunities and degree of certainty. Based on the provisions of investment theory and valuation theory, the requirements for substantiating the parameters of the valuation model have been clarified in terms of extending the planned settlement horizon until the moment of reimbursement, ensuring the objectivity of the interest rate to reflect the dynamics of the cost of capital, and providing the possibility of choosing the basis for calculating losses depending on the purpose of the assessment. The developed scientific, methodological and practical recommendations will help to increase the validity of the amount of losses, taking into account the specifics of the causes of occurrence, the chronology of losses and their compensation, and the impact of the time factor on the amount of compensation.

Оцінка як елемент управління нефінансовими активами державних установ

Evaluation plays a vital role in the management of non-financial assets in public sector institutions, which explains the significant interest of researchers in finding ways to improve it, analyzing the advantages and disadvantages of different approaches to evaluation, and studying the evaluation practice according to International Evaluation Standards. The purpose of the article is to reveal the features of evaluation as an element of management of non-financial assets of state institutions, as well as to analyze the features and approaches to assessing non-financial assets depending on their types and conditions of use. The structure of national and international evaluation standards was revealed. In the wartime and the post-war recovery of Ukraine's economy, it is advisable to rely on the results of evaluation conducted by the International Evaluation Standards, which are fundamental when making investment decisions, preparing financial statements, and ensuring regulatory lending requirements. Thus, the European integration of Ukraine is only possible with the implementation of the International Evaluation Standards, which can be implemented in several ways: full or partial application, as well as the development of national evaluation standards based on international ones. Valuation is not only one of the elements of the accounting method; valuation is an independent system consisting of such elements as the object and subject of evaluation, the subject matter of evaluation, and the subjective and objective side of evaluation. The article discloses certain aspects of the evaluation of non-financial assets of state institutions. Special attention is focused on justifying the expediency of choosing one or another approach to evaluation. It was determined that applying the cost approach to the evaluation of non-created non-financial assets is the most appropriate, which, however, does not exclude the possibility of combining it with other approaches in practice. Implementing International Valuation Standards in Ukrainian legislation will avoid opaque methodology and manifestations of subjectivism in selecting approaches to the valuation of non-financial assets of state institutions.

Unlocking the Value of ESG: Report from the International Valuation Standard Council

This report provides an overview of the work carried out by the International Valuation Standard Council (IVSC) over the past two years in relation to unlocking the value of environmental, social, and governance (ESG) criteria within the valuation process, including a summary of the recently published IVSC ESG perspectives papers and internally generated intangibles. The report also illustrates some key findings from the IVSC ESG survey for firms, investors, and valuation providers and advises when more explicit ESG-related valuation standards will be contained in international valuation standards.

Особливості проведення знецінення активів в умовах збройної агресії

A decrease in the value of the assets of enterprises due to direct damage or destruction, as well as a decrease in expected benefits due to the deterioration of the external environment in which the business operates, are the consequences of the Russian Federation's armed aggression in Ukraine. Therefore, the issue of accounting approaches and procedures for assessing losses from asset impairment becomes relevant. The article aims to define and critically analyze the features of the procedures for the impairment of fixed assets in connection with armed aggression. Signs of impairment are identified, the analysis of which is a prerequisite for assessing losses from the impairment of fixed assets. Cases and problematic aspects of implementing asset impairment procedures in conditions of armed aggression have been identified. Among them are the instability of the external environment, the need to update business plans, the development of several cash flow forecast scenarios, and the need to take into account additional risks from armed aggression in the discount rate. Methods of fair value assessment proposed in international valuation standards were disclosed. When identifying assets subject to an impairment test, it is proposed to create a register of objects that have suffered from armed aggression. When choosing between the assessment of fair value and value-in-use, the author concluded that determining fair value is a more difficult task, as it is based to a greater extent on external market assumptions. In contrast, the calculation of value-in-use is a more feasible task for the company's management, provided that the business is updated on time – plans and forecasts.

International Valuation Glossary—Business Valuation

Business valuation providers and users benefit from common understanding of terms with clearly established meanings and consistent application throughout the profession.To this end the following societies and organizations have worked collaboratively to compile definitions for the terms included in this Glossary:This Glossary updates the International Glossary of Business Valuation Terms originally published in 2001.This Glossary was developed as part of ongoing efforts to harmonize definitions for terms used in business valuation. It is intended to be a reference tool to facilitate communication within the business valuation profession and with relevant stakeholders and users. This Glossary is designed to be helpful but is neither authoritative nor prescriptive.To that end, the Glossary aims to provide a common understanding of technical terms used within the various subpractice areas of business valuation and for those operating in different markets. Users of valuation services are encouraged to familiarize themselves with the appropriate context, as not all terms are applicable to every use.It is acknowledged that terms used in different markets may vary. If any term in this glossary conflicts with a published governmental, judicial, or accounting authority, precedence should be given to the use and interpretation of terms as they appear in applicable published authoritative guidance, given the purpose of the valuation.Given that the definition for some terms in this Glossary may differ slightly based on the purpose of the valuation and jurisdiction, business valuation professionals1 should ensure they are using and disclosing the most appropriate definition for the circumstances of the engagement.Furthermore, organizations such as valuation professional organizations (VPOs), accounting regulatory bodies, tax authorities, and courts may have somewhat different definitions and interpretations. Users are also encouraged to refer to valuation texts and other relevant documents for more information and application guidance on specific terms.If the business valuation professional believes that one or more of these terms needs to be used in a manner that materially departs from this glossary, it is recommended that the term be defined as used within that valuation engagement. The use of the appropriate definition relies on the professional judgement of the business valuation professional.In determining the terms to be included in this Glossary, the following items were excluded:Users of this Glossary are cautioned that when a jurisdictional definition applies, it should take precedence over the definitions in this Glossary (one example of this might be with respect to the term “fair value”).Various valuation and accounting standards were considered in the development of this Glossary, such as International Valuation Standards (IVS), International Financial Reporting Standards (IFRS), United States Generally Accepted Accounting Principles (US GAAP), Uniform Standards of Professional Appraisal Practice (USPAP), and Statement on Standards for Valuation Services (SSVS). Although it is acknowledged that US GAAP and IFRS define certain terms related to financial reporting valuation, this Glossary does not include all such terms.The definitions provided herein are current as of the date of publication. As they are subject to change, this Glossary is intended to be updated periodically. This Glossary uses “see also” to refer to terms that are related, but not synonymous. Synonymous terms are cross-referenced with “also known as.” Contrary terms are cross-referenced using “contrast with.”This Glossary was prepared with input from the following technical advisors:A grateful acknowledgement to Carla Nunes and Marianna Todorova for their contributions and assistance with this Glossary.The above group wishes to thank the following organizations for their contribution to the review of this document: