Valuation Methodology Research Articles

The Effects of the Economic Valuation of Education from the Aspect of the Distance Learning System

The aim of the work is to confirm the issues of economic evaluation of education and distance learning systems, and to affirm the methodology of valuation and economic valuation as a key issue of objective valuation and reasoning. The subject of research in this paper is the evaluation of the quality of teaching delivered through distance learning studies, i.e., how students perceive the quality of this kind of teaching. A particularly significant research problem posed in this work is whether and to what extent the effectiveness of the economic adoption of the distance learning system is influenced by the current education system. In writing this paper, the author relied on previous research in the area of economic growth and development analysis, as well as technology evaluation and invisible capital. A comparative analysis of the distance learning system, which the author has been dealing with for many years, is also provided. The results certainly indicate important trends, which were expected. The conducted analysis only gives indications for further research, which is certainly lacking in Bosnia and Herzegovina at the level of tertiary education. In the context of harmonizing policies on the labor market and education policy, it would be interesting to observe the speed of employment of students who graduate from certain economic universities and professional studies in the country, but for such adequate monitoring, it is not enough to analyze the data alone from the employment office, it would be necessary to analyze the quality of individual faculties. The key conclusion: E-learning is an educational process realized using computer and information technologies, enabling spatial distance between the user and the provider of educational services. E-learning, as one of the alternative methods, forms, or technologies of education, has evidently gained primacy in learning and work in recent years. All educational processes are simultaneously economic processes with the primary goal of minimizing investments and maximizing economic gains. Keywords: Economic Valuation, Economic Development, Education.

Financial analysts’ use of industry specific stock valuation models

PurposeThe purpose of this paper is to explore the industry-specific preferred valuation model utilised by analysts’ in determining a stock’s target price. By understanding analysts’ use of industry-specific valuation models, we can enhance our comprehension of important aspects of value creation in these sectors. Therefore, understanding the industry context is crucial for accurately assessing the value of companies within that industry and selecting the most suitable valuation model.Design/methodology/approachThe method employed in this study is content analysis, examining the output of analysts’ valuation models within 25 Global Industry Classification Standard (GICS) industry groups. I hand-collected 806 equity reports from Capital IQ, selecting the four companies with the largest market capitalization from each of the 25 industry groups.FindingsPrice/Earnings (P/E) emerges as the preferred valuation model in 20 out of the 25 industry groups based on the GICS, with some exceptions. Notably, EV/EBITDA is favoured in the telecom, energy and materials sectors, while the capital goods industry primarily relies on Price/Cash flow (P/CF). In the Real Estate Investment Trusts (REITs) sector, P/AFFO (adjusted funds from operations) is the most commonly employed model. While earnings multiples remain the favoured valuation model for financial analysts, a noticeable shift away from multiperiod valuation models is evident after the first decade of the 21st century.Research limitations/implicationsThe findings can increase our comprehension of the interplay between valuation methodologies, industry characteristics and investment decision-making.Practical implicationsIt establishes a foundation for future research in this field and is anticipated to be of interest to analysts, fund managers and investors. The findings can increase our comprehension of the interplay between valuation methodologies, industry characteristics and investment decision-making.Originality/valueThis paper represents the first systematic and comprehensive examination of analysts’ utilisation of industry-specific stock valuation methods across all 25 GICS industry groups.

A critical analysis onto the conundrum of valuation of IP assets as part of liquidation process under IBC, 2016

This study critically examines the valuation of Intellectual Property (IP) assets during the liquidation process under the Insolvency and Bankruptcy Code (IBC), 2016, emphasizing its profound impact on creditor recovery and the efficiency of insolvency proceedings. The research employs a rigorous mixed-methods approach, combining qualitative analysis of high-profile case studies with quantitative assessments of valuation methodologies, such as market, income, and cost approaches. The central research issue revolves around the complexities and challenges of accurately valuing IP assets, which are often unique and lack direct market comparables. The study also scrutinizes the regulatory framework and the pivotal role of registered valuers in ensuring transparent and equitable asset valuation. The findings reveal that precise valuation is not merely a procedural requirement but a critical determinant of liquidation outcomes, influencing the overall recovery rate for creditors and the viability of IP-backed financial instruments. The paper argues that the meticulous calculation of discount rates and adherence to standardized valuation practices can significantly enhance the credibility of the insolvency process, attract more substantial investments, and ultimately lead to superior financial recoveries. This research provides vital insights and robust recommendations for policymakers, legal professionals, and financial analysts, advocating for a more refined and transparent approach to IP asset valuation under the IBC, thereby strengthening India's insolvency framework and market integrity.

Beyond aquifer boundaries: unveiling the multi-dimensional value of groundwater management in Jeju, Korea

ABSTRACT This paper presents a comprehensive analysis of groundwater valuation in Jeju Island, Korea, which relies heavily on groundwater resources. The research addresses the limitations of conventional valuation methodologies that often undervalue groundwater management and ignore spatial heterogeneity. We employ three non-market valuation aggregation methods: local benefit, national benefit, and a combined heterogeneous benefit approach. The heterogeneous benefit approach divides the population into groups based on their distinct groundwater valuations and then consolidates their willingness to pay. Using a contingent valuation method, we analyze survey data from 542 respondents in Jeju and 1,000 respondents nationwide to capture the comprehensive value of improving groundwater quality, considering both local and non-local dependencies. Results show that national benefits exceed local benefits by a factor of 21.4, and this disparity increases to 21.6 when spatial heterogeneity is included. These findings highlight a significant underestimation in previous studies focusing solely on local beneficiaries. Our approach enhances understanding of the varied values attributed to groundwater by different populations, providing crucial insights for sustainable water resource management

A wall between real estate valuation standards and professional appraisal practice: A focus on Italian market

Real estate appraisal standards provide guidelines for the preparation of reliable valuations. These standards emphasize the central role of market data collection in market-oriented valuation methodologies such as the Market Comparison Approach (MCA), which is the most commonly used. The objective of this study is to highlight the difficulties in data finding, as well as the gap between the standards and the actual appraisal practices in Italy. Thus, a detailed comparison was made between the real estate data considered necessary by the standards and those ones reasonably detectable by appraisers, showing that some important market information is not reachable due to legal, technical and economic factors. Finally, a case study is presented in which the actual appraisal of a residential property is schematically described to support what is claimed with the research question and thus the degree of uncertainty around an estimate judgment.

From Administrative Price to Market Value of Real Estate. The Evolution of the Valuation System in Poland

Abstract The article applies the method of historical research, using a temporal perspective dating back to 1985, to trace the evolution of market valuation principles for real estate in Poland. These principles evolved similarly to those in many other post-socialist countries, influenced by political and socio-economic transformations and the resulting list of objectives for which these values became essential. The changing legal regulations allowing for the emergence and development of a free real estate market played a decisive role in this process. It was also a period of preparing real estate valuation professionals to meet these requirements. Today, the methodology of valuation, under increasing pressure from various real estate market entities and the rapid advancement of intelligent data collection and processing technologies, is undergoing further evolution. In many countries, including Poland, lively discussions and disputes are ongoing regarding the legal authorization of statistical tools and automated valuation models in valuation practice. These possibilities are being considered particularly in the context of mass property valuations for tax purposes. The methodology involves the analysis of Polish legal provisions, foreign literature, and documents proving the gradual marketization of valuation principles.

Accuracy of Relative Valuation Methods in Predicting the Offer Price of Indonesian IPO Stocks

The increasing Initial Public Offerings (IPO) trend in Indonesia has created many investment opportunities for institutional and retail investors. However, multiple valuation methods often result in varying IPO price predictions, leading to uncertainty and confusion among investors. This study aims to assess the effectiveness of relative valuation methods in predicting IPO offer prices, focusing on widely adopted methods due to their simplicity and accessibility. The research evaluates three popular relative valuation metrics: the price-to-book (P/B) ratio, the price-to-earnings (P/E) ratio, and the price-to-sales (P/S) ratio. By analyzing companies that went public in Indonesia in 2023 and utilizing average financial ratios from the preceding year, the study seeks to determine which method provides the most accurate price predictions. The findings indicate that the P/B ratio is the most reliable method, achieving an average absolute error of 51.1%. This suggests that the P/B method minimizes valuation errors more effectively than P/E and P/S ratios. Moreover, regression models' P/B ratio demonstrates the highest adjusted R² value of 0.781, further validating its predictive accuracy. The implications of this study are significant for investors and financial analysts who rely on relative valuation methods to make informed decisions about IPO investments. By highlighting the P/B ratio's superior performance in predicting IPO offer prices, this research contributes to the ongoing discourse on valuation methodologies and their practical application in emerging markets like Indonesia.

Quantification of Ecosystem Services of the Melghat Tiger Reserve, Maharashtra, India

The present study was an attempt to quantify the direct as well as indirect ecosystem services from forest ecosystems in the Melghat area, which were undervalued in economic terms as compared to other developmental projects. The valuation of growing stock in the Melghat Tiger Reserve (MTR) was estimated to be IRs 80221 crores (equal to 9600 million US $). While the carbon sequestration potential of the system was estimated to be IRs 9291 crores, the value of non-timber forest products (NTFP), a part of the provisioning service, was IRs 3.92 crore. The Forest land itself is valued at IRs 66874 crores using the current land costs in the region for non-forest uses. Recreation benefits are estimated to be IRs 30.94 crores which is more than the user fee collections at entry points. The contribution value of biodiversity and other ecosystem services for the entire Melghat landscape was IRs 2156 crore. Timber and carbon sequestration loss due to land distributed under forest rights was IRs 447.23 crore, while gains from agricultural use of that land by farmers was merely IRs 7.07 crore. Thus, the land conversion resulted in 63 times higher loss in the total ecosystem services than the gains from the subsistence-level farming practice for provisioning service alone. The total economic value of the Melghat landscape was estimated at IRs 1,69,853 crore, equalling to IRs 57.20 lakh per ha. The Net Present Value (NPV) of IRs 7.5 lakh per ha for protected areas such as the MTR prescribed by the Ministry of Environment, Forests and Climate Change, Government of India is much lower than the estimated value, emphasizing the need to revise NPV using appropriate valuation methodology.

A Fair (?) Quantification of Damages in Investor-State Arbitration Proceedings: Reflections from the UNCITRAL Working Group III ISDS Reform Process

This paper considers the proposals advanced by some States in the context of the ISDS reform process at UNCITRAL’s Working Group III to curb a perceived tendency towards (too) “high”awards on damagesin investment arbitration proceedings and “inconsistent”approaches to valuation methodologies. Based on analysis of the arguments brought forward in that discussion, it is argued that while clear procedural guidelines on the application of the valuation methodologies used by arbitrators would be a commendable outcome of the reform process, other proposals aimed at capping damages based on equitable considerations or contextual factors, including the financial capacity of the host State, pose more questions and may be more properly addressed in other venues or through existing tools.

Comparison of Work Relative Value Units Assigned to Urological and Gynecological Surgical Procedures.

We sought to determine if work relative value unit differences exist between analogous, sex-specific procedures. Representatives from the AUA and the American College of Obstetricians and Gynecologists independently reviewed the entire procedural code set and identified sex-specific procedures that had an analogous procedure in the opposite sex. These pairs were then evaluated and compared using current American Medical Association Relative Value Scale Update Committee methodology. Comparable code pair values were then examined to determine any systemic bias in the work relative value units assigned between the procedures. Mean differences and 95% confidence intervals were used to determine any differences in procedure or physician time values. The methodology used considered global period, intraservice time, total time, hospital days, postoperative office visits, and the date of the committee review. Of the 10 directly analogous code pairs reviewed, 7 of the female procedures had higher work relative value unit differences (range 0.29-6.47), and 3 of the male procedures had higher work relative value unit differences (range 1.23-2.34). There was no statistical difference between the code pair work relative value units. The work relative value unit per minute of intraservice time and total time were not statistically different. In this study, we compared operative procedures performed in women with clinically comparable operative procedures performed in men that had similar surgical approaches, global periods, and valuation methodologies. Overall, no statistical differences in work relative value units were demonstrated.

Economic valuation of Harmful Algal Blooms (HAB): Methodological challenges, policy implications, and an empirical application

This paper presents a literature review on the economic valuation of Harmful Algal Bloom (HAB) impacts, identifying methodological challenges, policy implications, and gaps. Unlike previous literature reviews, we are particularly interested in determining whether the economic valuations of HABs have included a policy analysis. Our paper provides a conceptual framework that allows us to evaluate whether applications of economic studies of HABs are consistent with a well-defined economic welfare analysis. It links methodologies and techniques with welfare measures, data types, and econometric methods. Based on this literature review, we present an example of economic valuation that closes the gap between policy analysis and valuation methodology. We use a stated preferences study to estimate a “seafood price premium” to create a fund to support monitoring systems and for damage compensation to producers in the presence of HABs. Results show that most economic studies on HAB valuation do not consider any cost-benefit analysis of a defined policy intervention. The predominant economic valuation methodology uses market information to estimate a proxy for welfare measure of the impact of HABs (loss revenue, sales, exports). Moreover, nonuse and indirect use values are ignored in the literature, while stated preference methodologies are underrepresented. Finally, results from 1293 surveys found that people are willing to pay an increase in the price of mussels to support a policy that informs on HAB. However, the lack of institutional trust affects the probability of paying negatively.

The Intrinsic Value of the Information Contained in Medicine Leaflets

This paper applies contingent valuation methodology to estimate the monetary value of the information contained in medicine leaflets. By surveying a sample of the general population, we obtain willingness-to-pay estimates of the value of providing additional quantitative information on potential benefits and side effects of a hypothetical medicine, according to the best evidence available about risk communication. The willingness-to-pay estimates found in our study ranged from 60 cents to 1 euro per month. In addition, some consistency tests of the robustness of our estimates are also presented, as well as evidence on their feasibility, reliability and validity.

End-Of-Life Management of Photovoltaic Panels: A Model for Forecasting and Economic Evaluation

The global surge in photovoltaic (PV) panel deployment since the 2000s has contributed to advancing the renewable energy sector. However, this proliferation raises concerns about the increasing number of PV modules that will end their operational life in the coming years, necessitating effective planning for their decommissioning and recovery. This paper addresses this imminent challenge by presenting a predictive model to estimate the volume of decommissioned modules from existing installations. To take into account the variability associated with the operational life duration of PV panels, three distinct scenarios were considered: early loss, regular loss (both modelled through the Weibull function) and fixed loss. Furthermore, the article introduces a methodology for the economic valorisation of materials recovered from decommissioned PV modules, according to the different technologies employed. This approach encourages sustainable practices by assigning an economic value to recovered materials, promoting a circular economy in the renewable energy sector. The economic valuation methodology adds practicality to dismantling, emphasising responsible waste management's potential economic benefits. In order to illustrate the applicability of the model, the study focuses on the Italian case, providing a detailed regional breakdown. The regional analysis not only improves the accuracy of the predictive model but also offers insights into localised PV module disposal patterns. By adapting the model to the individual Italian regions, the article serves as a concrete and valuable resource during the programming and planning phases, facilitating the implementation of a strategy to efficiently recover PV modules and consequently minimising the environmental impact associated with decommissioning activities.

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.

The Paradigm Shift From Patient to Health Consumer: 20 Years of Value Assessment in Health.

Health care is undergoing a "revolution," where patients are becoming consumers and armed with apps, consumer review scores, and, in some countries, high out-of-pocket costs. Although economic analyses and health technology assessment (HTA) have come a long way in their evaluation of the clinical, economic, ethical, legal, and societal perspectives that may be impacted by new technologies and procedures, these approaches do not reflect underlying patient preferences that may be important in the assessment of "value" in the current value-based health care transition. The major challenges that come with the transformation to a value-based health care system lead to questions such as "How are economic analyses, often the basis for policy and reimbursement decisions, going to switch from a societal to an individual perspective?" and "How do we then assess (economic) value, considering individual preference heterogeneity, as well as varying heuristics and decision rules?" These challenges, related to including the individual perspective in cost-effectiveness analysis (CEA), have been widely debated. Cost-effectiveness measures treatments in terms of costs and quality-adjusted life-years (QALYs), where QALYs assume that a health state that is more desirable is more valuable, and therefore, value is equated with preference or desirability. QALYs have long been criticized for empirical and conceptual shortcomings. However, policy makers in many countries have used QALY measures to make health coverage decisions, although now, patients, and patient advocates, are questioning the valuation methodologies. This has led to the development of new approaches to valuing health, which are already starting to be used in the United States. This paper reviews 20-25 years of value assessment approaches in health and concludes with challenges and opportunities for value assessment methods in health in the years to come.

Willingness to Pay for a Quality-Adjusted Life Year among Gastrointestinal Cancer Patients at a Tertiary Hospital of Vietnam, 2022.

Gastrointestinal (GI) cancer burden in Asia is increasing, and Vietnam is no exception. Assessing the affordability of achieving a quality-adjusted life year (QALY) in gastrointestinal cancer patients Vietnam, as well as identifying predictors of willingness to pay (WTP) per QALY, is crucial to decision-making around medical intervention prioritization and performing medical technology assessments for these cancers. Our study aimed to estimate WTP/QALY gained and associated factors among patients diagnosed with GI cancer at a tertiary hospital in Hue, Vietnam. A cross-sectional descriptive study, using contingent valuation methodology was conducted among 231 patients at tertiary hospital in 2022. A double limited dichotomous choice and the EQ-5D-5L were utilised to estimate WTP and QALY, respectively. Quantile regression was applied to determine predictors of WTP/QALY. The mean and median maximum WTP/QALY gained among GI patients was $15,165.6 (42,239.6) and $4,365.6 (IQR: 1,586.5-14,552.0), respectively, which was equal to 3.68 times the 2022 gross domestic product (GDP) per capita in Vietnam. Additionally, cancer severity was found to have a significant impact on WTP per QALY gained, with a higher amount identified among patients with earlier stages of GI cancer. Furthermore, living in an urban dwelling and patients' treatment modalities were significantly associated with WTP/QALY. Evidence from our study can be used to inform how decision-makers in Vietnam to determine the cost-effectiveness of GI cancer interventions.

ОЦЕНКА ЭФФЕКТИВНОСТИ ВНЕДРЕНИЯ ЦИФРОВЫХ ТЕХНОЛОГИЙ ДЛЯ ПРЕДПРИЯТИЙ ЭЛЕКТРОЭНЕРГЕТИЧЕСКОЙ ОТРАСЛИ

Digitalization of the electric power industry is an integral part of the process of technological transformation leading to the transition to Industry 4.0 and Industry 5.0. The uneven distribution of assets between the companies participating in the electricity market requires an individual approach to assessing the effectiveness of digital solutions. This article analyzes the challenges that hinder the formation of a unified approach to assessing the effectiveness of digitalization in this industry. The analysis identifies eight key challenges, including the lack of a unified evaluation standard, heterogeneous implementation conditions, personnel transition and adaptation, data security and cyber security, financial risks, difficulty in quantifying benefits, consideration of social and environmental aspects, and updating legislation and regulations. The use of tokenization of digital assets using blockchain technologies to overcome these obstacles is proposed. The paper emphasizes the need to develop unified valuation methodologies that consider the many factors associated with digital transformation and contribute to the formation of a single standard in this area

FINANCIAL ANALYSIS AND VALUATION OF SELECTED UK LISTED COMPANY: A CASE STUDY

Objective: The objective of this study is to investigate the financial analysis and valuation of UK listed companies, with the aim of gaining insight into the financial performance and operational position of Hill and Smith Plc and other key players in the industry. Theoretical Framework: In this study, the main concepts and theories that underpin the research include the irrelevance theory, trade off theory, pecking order theory and market timing theory. These theories explain the underlying factors that determine the financing and valuation choices of listed firms. Method: The study adopted the net assets valuation, dividend discount model, free cashflows, earnings model, comparative companies, and comparative transactions valuation methodologies. The study adopted Hill and Smith Plc as a case study, extracting relevant data from its annual financial records. Results and Discussion: The study revealed a +4.17% abnormal return, suggesting an exceptional performance. It compared financial positions with peers like Morgan Advanced Materials and Keller Group, employing multiple valuation methods. The earnings model indicated a share price of £14.1, suggesting a potential overvaluation in the stock market at £10.0 per share. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of corporate finance and valuation. These implications impact various stakeholders such as the researched firms, investors, and academia. Originality/Value: This study contributes to the literature by highlighting the valuation methodologies employed in the study, emphasisng the importance of accurate valuation techniques in informing investment decisions.

Goodwill measurement in consolidated financial statements

The largest business in terms of capitali­zation value, revenues and profits was formed as a result of a business combination. Consolidated financial statements are of undoubted value to users and stakeholders in assessing risks, prospects and analyzing the interaction of companies within the group. Special indicators of consolidated financial statements, such as goodwill, allow estimating the expected value of acquired companies in a business combination. However, the current methodology does not allow for the evaluation of all aspects of value that constitute goodwill. The aim of the article is to supplement the methods of goodwill valuation in business combinations for further substan­tiated disclosure in consolidated finan­cial statements, in accordance with the interests and needs of investors and managers. The research methodology is based on a systematic approach, critical analysis, synthesis, induction and deduc­tion, comparison, economic-mathematical methods of goodwill calculation, and genera­lization of principles of consolidated reporting. An analysis of key international standards allowed us to determine the peculiarities of applying the acquisition method for different types of business combinations. The share of ownership in an investee determines the nature of influence and the method of consolidation. Goodwill is the difference between the purchase price and the fair value of the net assets acquired in a business combination. When companies merge, goodwill reflects the intangible aspects of the business and the expected added value, which serves as the investment object. Therefore, methods for valuing goodwill during business combinations are identified to disclose in consolidated finan­cial statements in accordance with IFRS. Additionally, a group of complementary good­will valuation methods is systematized to determine and justify all aspects of forming the undisclosed added value of the investee compa­ny. The proposed methodology allows for considering the interests of various stakeholders in goodwill valuation. It is crucial to regard the goodwill disclosed in the financial statements as consent and willingness of the parent company to pay more, based on evidence and calculations obtained through a comprehensive goodwill valuation methodology. The proven hypothesis of the research suggests that for a justified valuation of goodwill during consolidation, it is necessary to supplement existing approaches and measure the value of brand, long-term stability, sustainable development, corporate so­ci­al responsibility, and utilize artificial intelli­gence. Goodwill reflects strategic value but may also be subject to impairment if its value is not sufficiently supported by expected profits.

Переход от инвентаризационной стоимости объектов недвижимости к кадастровой при налогообложении недвижимости физических лиц: процесс и его последствия

Purpose: to consider the process of changing the calculation of taxation in Russia in recent years, its procedure and the consequences of changing the calculation of real estate tax. To show the need to change the introduced progressive scale of property tax for owners of residential facilities. To assess the possibility of changing the methods of calculating the base for taxation of individuals. Methods: analysis of the chronology of the establishment of taxes in the Russian Federation and the transition of recalculation of land tax in time. Comparison of tax calculation by inventory and cadastral values, property taxes in the Russian Federation. Results: the main reasons preventing the formation of an objective base for property taxation are identified: the insufficiency and unreliability of the information used, including at the initial stage of applying mass valuation of property as initial data and the imperfection of the developed methodology of cadastral valuation. Practical significance: historically, with the formation of states, a fiscal system was introduced. Taxation of real estate in modern Russia is regulated by a set of regulatory documents. Among the basic concepts of the field of taxation, the concept of the real estate tax base should be highlighted – the monetary expression of income from the sale of an immovable object. Thus, in recent years, changes have been made in the definition of the real estate tax base, which has a key impact on the formation of both the value and valuation of real estate and the formation of the fiscal policy itself in Russia. This article examines the process of changing the calculation of taxation in Russia in recent years, its procedure and the consequences of changing the calculation of real estate tax.