Concept of the national valuation standards: development framework, prerequisities and the best international practices

Abstract

The importance of developing national valuation standards is unquestionable. It was expected that a set of standards binding on all appraisers practicing their profession in the Republic of Moldova would be developed soon after the adoption of the Legal Act on Valuation Activities in 2002. However, the regulations adopted at that time for market valuations of property and intellectual rights were describing the basic valuation concepts as well as the valuation principles, approaches and steps in sufficient detail – and so the lack of national valuation standards was not acutely felt. The methodology-related environment for market valuations of property was in place - and it was believed to be sufficiently developed for that time. We should emphasise that the first regulations on market valuation methodology were developed in accordance with the International and European valuation standards; this is why these documents remain relevant and still find broad application in market valuation practices although they are about 20 years old.