Glossary
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T
Tangible Assets
Assets with a physical manifestation. Examples include land and buildings, plant and machinery, fixtures and fittings, tools and equipment, and assets in the course of construction and development.
Tax Amortisation Benefit
Tax relief available on amortisation of the capitalised asset.
Technical Obsolescence
— SEE: Functional Obsolescence
Terminal Value
The continuing value at the end of the period over which cash flows are projected in a discounted cash flow analysis.
— SEE also: Reversionary Value
Trade Related Property
Any type of real property designed for a specific type of business where the property value reflects the trading potential for that business.
— SEE also: Specialised Property
U
Unit of Account
The level at which an asset to be valued is aggregated or disaggregated with other assets.
Unit(s) of Comparison
A common basis of comparison used to analyse differences between assets. It may be based on a physical characteristic, eg a price per square metre or square foot, or an economic characteristic eg the ratio of a asset’s sale price to its net income.
Unsystematic Risk
A risk that is specific to an entity or asset or group of assets. Can be diversified.
—
SEE also: Business Risk; Financial Risk; Market Risk; Systematic Risk; Systemic Risk
Useful Life
IFRS Definition from IAS 16:
(a) the period over which an asset is expected to be available for use by an entity; or
(b) the number of production or similar units expected to be obtained from the asset by an entity.
— SEE also: Economic Life
Utility
An expression of the degree of an asset’s usefulness.
V
Valuation
(1) The process of establishing the value of an asset or liability;
OR
(2)
The amount representing an opinion or estimate of value
— SEE also: Appraisal
Valuation Approach
One of three principal ways of estimating value. Each valuation approach includes different methods that may be used to apply the principles of the approach to specific asset types or situations.
— SEE also: Cost Approach; Income Approach; Market Approach; Valuation Method
Valuation Date
The date on which the opinion of value applies.
Valuation Inputs
Data and other information that is used in a valuation method. Inputs may be actual or estimated.
Valuation Method
A specific technique or model used to estimate value. All valuation methods fall within a valuation approach.
— SEE also: Valuation Approach
Valuation Methodology
The study of valuation methods.
Valuation Report
A report that communicates a valuation opinion and relevant associated matters to its intended recipient. The matters to be addressed in a valuation report are set out in IVS 103 Reporting.
Value at Risk
The maximum loss that could be expected to be incurred over a nominated time period as a result of movements in identified risk parameters, within a specified level of probability based on statistical analysis of historical price trends and volatilities.
— SEE also: Business Risk; Financial Risk; Market Risk; Systematic Risk; Systemic Risk; Unsystematic Risk
Value in Use
IFRS Definition from IAS 36: “The present value of the future cash flows expected to be derived from an asset or cash-generating unit.”
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