THE VALUERS ASSOCIATION OF THAILAND
October 2000
Standard Practices
for
Valuers in Thailand |
| This is a compilation of standards for valuers in Thailand set forth by the Valuers Association of Thailand and currently enforced among its certified valuers. These standards include: |
| • |
Codes of professional ethics and standards of professional appraisal practice issued on November 24, 1997, |
| • |
The guidance notes on asset valuations in Thailand enforced by the Valuers Association of Thailand in 1993, and |
| • |
Standard construction costs announced on May 24, 2000. |
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The 1997 codes of professional ethics and standards of professional appraisal practice
This 1997 announcement is set forth in the same manner as other world standards. The following sumarizes its contexts: |
| 1. |
Standard professional practice must follow internationally-accepted standards. |
| 2. |
Confidentiality, integrity, neutrality and contribution to the development of the profession are among codes of professional ethics of valuers. |
| 3. |
The Sub-committee on Valuation Standards and Ethics was established in order to strictly enforce this issue. It will conduct an examination when there is a submission of a case for consideration. |
| 4. |
The guilty members will be put on warning, temporarily lose membership or permanently lose membership. |
| 5. |
Appeals can be submitted to the Executive Committee of the Valuers Association of Thailand. |
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The 1993 guidance notes on asset valuations in Thailand
These are standardized guidance notes similar to other countries. They resulted from a study of the guidance notes and valuation standards of the IVSC, the RICS and the Hong Kong Institution of Chartered Surveyors. They consist of the following: |
| 1. |
Valuers: qualifications stipulated, the use of joint valuers, qualified valuers and additional valuers. |
| 2. |
Classification of assets: the definition of fixed and current assets, real property and plant, machinery and equipment properties, specialized and non-specialized properties and the like. |
| 3. |
Principles in preparing asset valuations in Thailand: this discusses the basis of valuation (open market basis of valuation, depreciation and going concern value), subject properties, date of valuation and special assumptions. |
| 4. |
Asset valuation standards: typical service proposal, basic contents of valuation report and special conditions needed to be disclosed in a typical valuation report. |
| 5. |
Standard format of valuation summary: this is a covering letter of the report to summarize the result of the research of value. |
| 6. |
Minimum information required for preparing asset valuations: this includes the clarification on valuation methodology, the keeping of valuation evidences for a period of at least 5 years and the like. |
| 7. |
Definitions and guidance notes for open market value and other bases of market valuation: definition of an open market value and the like. |
| 8. |
Condition of engagement: certification of rights on properties, limiting conditions, testimony in court, validity of report and the like. |
| 9. |
Code of professional ethics |
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The 2000 standard construction costs
In order to standardize the bases of calculating "replacement cost new" in valuing properties by the Cost Approach to Value, the following annual standard construction costs was recently set forth. This is considered an estimate. Adjustment to specific conditions can be made to suit each property.
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