Denis Valentinovich Manturov Minister of Industry and Trade of the Russian ...
An important stage in determining the cost of construction is the transition from the base price level, for which estimated standards, estimates have been developed, or the cost of an analogue has been determined, to the cost as of the valuation date. This transition is done using price indices.
Price indices represent the ratio of the value of construction products, works or resources at the current price level to the value at the base price level.
The following types of indices can be used by evaluators:
1) indices to the elements of direct costs by type of construction and installation work;
2) indices to the elements of direct costs for a full range of works;
3) indices to the total cost of construction and installation work by type of construction and work;
4) indices to individual elements estimated cost(Construction and installation work, equipment, other costs).
Sources of regularly updated information on current indices, as a rule, are the monthly bulletins of the Regional Centers for Pricing in Construction (RCTsS). Information on price indices in construction is also published on a quarterly basis in the bulletins of the firm KOINVEST (Moscow).
The use of this or that index depends on the nature of the available estimate documentation and the structure of the estimated cost of construction.
It should be borne in mind that indexing alone does not solve the problem of transferring the construction cost at the base price level to the cost as of the valuation date. To take into account the costs operating in modern market conditions and not taken into account in the preparation of estimates during the construction of the building, as well as to take into account the entrepreneur's profit, the indexed value of the estimated cost of construction should be increased by the values corresponding to these costs.
Despite the wide range of estimated standards used for construction design purposes, it should be borne in mind that specific appraisal approaches are prioritized in real estate appraisal.First of all, reliable data on construction contracts for the construction of such buildings should be considered as a source of information on the cost of new construction. In the absence of direct access to the terms of contracting contracts, this information can be obtained from local construction contractors.
It should be noted that work is currently underway in Russia to create a specialized assessment database. One of the directions of such work is the use of the domestic regulatory and methodological base, developed specifically for the purpose of revaluation and called "Aggregated indicators of the replacement cost of buildings and structures for the revaluation of fixed assets (UPVS)." The UPVS includes 39 sectoral and inter-sectoral collections containing the cost indicators of the construction of a unit of measurement - 1 m of area, 1 m of construction volume - for various typical buildings and structures. UPVS take into account the average costs in the volume of all chapters of the consolidated estimate of the cost of construction. The area of application of the UPVS is buildings and structures erected according to standard designs, mainly in the period 1930-80.
Based on the system of estimated standards discussed above, in modern real estate appraisal practice, four main methods are used to determine the cost of new construction. They also form the basis for assessing the cost of restoration.
Among them:
Basic index method;
- resource method (or cost, costing, estimate, unit prices);
- modular method (component breakdown method);
- method of comparative unit (method of aggregated indicators). Let's consider them sequentially.
The base-index method involves the use of data from design estimates at the base price level and the use of a system of directive (recommended by the regional center for pricing in construction - RCTsS) correcting conversion factors (indices) from base prices to current prices recommended by regional centers for pricing in construction. The reduction to the level of current prices is carried out by multiplying the basic cost by type of work or elements of direct costs by the corresponding index. Basically, the base is used as the most complete and detailed. In this case, both integral conversion factors for the entire complex of construction and installation work for various types of buildings and differentiated conversion factors can be used, taking into account all types of work, including separately the increase in the cost of materials, basic wages and the operation of machines and mechanisms. As show applied research, the difference in the values of the replacement cost, calculated using the integral and differentiated coefficients, is 10-15%.
The base-index method in the presence of ready-made estimates is effective for practical use. However, it requires knowledge of the estimate business, and when using it, it is desirable to involve specialist estimates from design or contract construction organizations.
The resource method for assessing the replacement cost is based on determining the physical volumes of structural elements of buildings and structures, the consumption of building materials, calculating the cost of these materials (or structural elements) in current regional market prices with the subsequent addition of the cost of remuneration of basic workers, operation of machines and mechanisms, limited and other costs, as well as planned savings.
The volumes of material resources are determined either from the design documentation or from the results of measurement work. Labor costs and the duration of operation of machines and mechanisms are determined according to standard data, and their current value is taken as the cost of a unit volume of each resource.
The resource method based on the assessment of direct cost elements (resources) at current market prices gives a better approximation to market value buildings (structures) than the base-index. However, the resource method of real estate appraisal requires high labor costs, high qualifications and significant experience of appraisers.
Despite the fact that at present, many software systems have been developed for the preparation and release of estimates, in the practice of appraisal activities the resource method is limitedly applicable, since it involves laborious determination of the amount of construction and installation work, the cost of building materials, the cost and time of operation of construction machines. However, in modern conditions this method is gaining priority in building design.
It is also necessary to pay attention to the following feature of the resource method. Since it uses current market prices and prices that take into account modern production technology, modern materials and modern machines and mechanisms, it can be stated that when evaluating objects with a chronological age of at least five years, the resource method determines the replacement cost, and not restoration cost. This also fully applies to the base-index method using territorial unit rates.
It should also be borne in mind two more additional circumstances related to both the resource and the basic-index method.
First, when using indices to the total cost of construction and installation work by type of work or current market prices of resources, a redistribution of specific weights structural elements and engineering systems in the total replacement cost (due to different degrees of rise in the cost of elements). Secondly, one should carefully use in the calculation of wear the available normative data on the service life of the assessed structural elements and engineering devices made of modern materials, since the durability of the latter may not correspond to the durability characteristics of the materials laid down in the normative data. At the same time, the determination of the physical wear and tear of the structural elements of the object according to the standard service life may be incorrect.
Taking into account the above, the use of the resource method in determining the total costs of new construction of existing facilities is possible with two caveats:
1) the replacement cost is actually determined;
2) the use of the standard service life of elements when calculating the amount of physical wear and tear may be incorrect.
A variation of the resource method is the resource-index method, characterized in that the prices of resources are taken not at the current level, but at the base level. In this case, the cost of resources is also obtained at the base level. To go to the current price level, it is necessary to multiply the base cost of resources by the corresponding indices, and then sum the results to obtain the value of direct costs at the current price level.
The second type is a simplified version of the resource method, characterized in that the costs of wages of basic workers and the operation of construction machines are determined on the basis of elementary estimate norms or resource indicators, and as a percentage of the cost of building materials based on the average statistical data of construction organizations or a specific contractor (for a certain type of building). The modular method (the method of breaking down into components) consists in dividing all types of construction and installation work into enlarged sections (modules). These modules are: earthworks, foundations, frame, walls, ceilings, partitions, roofing, windows, doors, interior decoration, internal plumbing works, electrical works, etc.
The percentage of any (any) of the main (capital) modules in the total cost of the object is determined. This information can be obtained from the technical passport of the object, and in its absence - from the collections of consolidated estimated standards (OPSS, Price lists) and consolidated indicators of replacement cost (UPVS). Prices for the relevant Types of work (modules) are selected from the available estimate documentation or from the enlarged estimate standards (USN, UPBS BP, UPSS, Price lists, etc.). In the absence of such prices, local estimates are drawn up for the corresponding types of work using the base-index or resource method.
The modular method is advisable to use for an approximate assessment when there is a lack of initial information. In this case, it is enough to determine the costs for one or several main modules in order to find the total cost of construction and installation work, based on their approximate specific contribution, expressed as a percentage.
Carrying out an estimate calculation using consolidated standards requires the performer to have professional skills in the estimate business.
The comparative unit method uses data on present value any parameter, for example, 1 m2 total area, 1 m Current prices are taken from statistical data on the average actual cost of construction in a given region, for example, from the RCTsS bulletins, base prices are taken from the collections of aggregated estimated standards (OPSS, Price lists), aggregated replacement cost indicators (UPVS).
The comparative unit method is convenient to use in cases where the evaluated object occupies a part of the building (structure), and the establishment of its share (specific weight) in the total cost is difficult due to significant differences in the layout and height of floors, structures, quality and degree of external and interior decoration as well as differences in engineering equipment and technical systems.
The method is the least laborious and provides an accuracy of about 15-20%.
The UPVS collections were developed in 1970-1972. and were intended for the revaluation of buildings and structures in all industries National economy on January 1, 1972
The aggregated figures given in the collections are compiled at prices introduced from January 1, 1969.
In total, 39 collections of UPVS were developed for various sectors of the national economy. UPVS are grouped by types of buildings and structures and contain the replacement cost of 1 m3 of the construction volume of buildings or 1 km of a pipeline, 1 km of a road, etc. depending on a number of parameters (their purpose, design, capital, landscaping, size and location in a particular territorial zone, taking into account the type of climatic region through the appropriate correction factors).
UPVS include:
All direct costs;
- overhead costs and planned savings;
- general site expenses for preparation and development of the site;
- the cost of design and survey work;
- costs associated with the production of work in the winter;
- costs of temporary buildings and structures;
- the cost of maintaining the management of an enterprise under construction, etc.
If the evaluated object was built earlier than the base year (depending on the collection used), then to determine the cost of building the object, an indicator of replacement cost is needed (1 m3, 1 m2, 1 running meter).
If the appraised property was built later than the base period used in the calculation, then the replacement cost of the base period must be adjusted to the replacement cost of the appraised property as of the date of its commissioning. At the same time, the magnitude of the adjustment is determined by the influence of scientific and technological progress (STP) on the cost of construction. This influence is twofold.
On the one hand, scientific and technological progress leads to the improvement, increase in the efficiency of construction technology, which causes a reduction in costs per unit of construction products.
On the other hand, NTP leads to the emergence of additional costs in construction (more complex finishing of an object according to modern standards, its arrangement modern views communication, communication, service, etc.).
So, according to the data of Glavgosexpertiza, as a result of scientific and technical progress, the rise in the cost of construction was 5-6% per year, and its reduction in price - 3-4% per year. The result of this was a letter from the State Construction Committee of the USSR dated October 5, No. 79D "On amendments to the cost of construction, reading out the change in value-forming factors." By this letter, the amount of the raising amendment was allowed at a rate of up to 3%.
Thus, in order to improve the accuracy of the estimate, it is recommended to adjust the replacement cost of the base period at a rate of 2% per year.
For example, a real estate object put into operation is being evaluated. Its replacement cost, determined according to the UPVS collection, is equal to 100,000 rubles. In this case, the cost of its construction should be taken equal to 100 OOO x (1 + 0.02) 5 = 110,408 rubles.
The comparative unit method is very widely used by appraisers, but it must be applied very carefully, since the named sources of information (OPSS, Price lists, UPVS) contain many features that need to be known and taken into account (for example, what costs are included in the unit cost).
Examples of calculation of replacement cost
A building (structure) of a potato storage located in the suburbs of St. Petersburg was selected as the object of assessment. Evaluation date (conditionally) - January 1.Description of the object of assessment:
The object is a functioning potato storage with storage facilities.
The building is detached, has a rectangular shape, year of construction - 1970, capital group - 2, number of floors - 1.
Total estimated area:
Buildings in plan - 532 m2;
- useful area - 480 m2
The height of the building is 4.5 m.
Construction volume - 2394 m3.
Information about the structural features of the building:
Foundation:
- under the columns - reinforced concrete, glass type,
- under the walls - strip, prefabricated reinforced concrete blocks;
- columns - reinforced concrete;
- external walls - brick;
- supporting structures - full reinforced concrete frame;
- floors - prefabricated reinforced concrete slabs;
- gates - wooden;
- partitions - brick;
- roof - soft roll in three layers;
- floors - concrete.
Engineering networks - electric lighting, ventilation (natural).
For the object under consideration: territorial zone - 1 (first), climatic region - 2 (second), industry - Agriculture.
Let us consider the calculation of the replacement cost of improvements to the assessment object using all four methods: basic-index, resource, modular, and the comparative unit method.
As an application, we will give the classification of buildings into capital groups depending on the material of the capital structures: foundations, walls and floors.
1. Calculation of the replacement cost by the basic-index method
The last time the base prices in construction in our country were established (SNiP 4.03.91). In practice, estimate calculations for construction and installation work are more often compiled at basic prices, since the regulatory documentation (SNiP IV-4-82) was developed in the most detail. In addition, the regional indices for recalculating the estimated cost from basic to current prices, which are being developed in St. Petersburg by the Regional Center for Pricing in St. Petersburg Construction, are determined precisely for recalculation from the base level. These indices are published in the monthly bulletin "Stroyinform SPb".
According to the 1984 and current standards, the estimated cost of building an object is determined by a consolidated estimate and financial calculation, which includes 12 chapters:
Chapter 1. Preparation of the construction site (cost rate - 1-10%).
Chapter 2. The main objects of construction.
Chapter 3. Objects of auxiliary and service purposes.
Chapter 4. Objects of transport facilities and communications.
Chapter 5. Energy facilities.
Chapter 6. External networks and structures.
Chapter 7. Improvement of the construction site and landscaping (the entire infrastructure of the facility in chapters 3-7 has an approximate cost rate of 3-30%).
Chapter 8. Temporary buildings and structures (usually regulated by 1-4% of the amount of chapters 1-7).
Chapter 9. Other work and costs (usually about 4-10% of the amount of chapters 1-8):
- rise in the cost of work in the winter (1.5-3.5%) of the amount of chapters 1-8;
- tax on the use of roads (approximately 2.5%) of the amount of chapters 1-12, etc.
Chapter 10. Content of the Directorate (technical supervision), designer supervision (from the sum of chapters 1-9):
- technical supervision (by the customer) 3-5% of the amount of chapters 1-9;
- field supervision (by the designer) 3-10% of the amount of chapters 1-9.
Chapter 11 Training of operational personnel (the chapter is introduced if there is a need for specially trained personnel, is not standardized and not regulated. May be absent if the object is typical).
Chapter 12. Design and survey work. Depending on the amount of direct costs, usually about 1.5-11% of the amount of chapters 1-11.
The calculation is based on Chapter 2, which includes data from local estimate calculations (estimates) for certain types of construction and installation work: earthworks, foundations, walls, floors, openings, roofing, etc. To compile local estimates, EPER-84 and collections of average regional estimated prices for materials, products and structures (annex to SNiP IV-4-82) are used. Currently, the RCTsS has developed a new base PRS-98, PRR-98, PRM-98, EPC-99, EPR-99, EPM-99.
Calculation sequence:
1. The data of calculations of local estimates are grouped by elements of direct costs: materials, basic wages of basic workers and operation of machines and mechanisms.
2. Determined direct costs in current prices.
3. The costs of overhead costs and profits of the contractor are determined by region. Moreover, overhead costs can be determined from direct costs or from the wage bill (payroll) as a percentage.
From the index of the current level of wages in construction in relation to the level of estimated prices in 1984.
The contractor's rate of return was set by the Gosstroy of Russia at 12% (8% for the 1984 base).
4. Summing up the above costs, the cost of construction and installation work is determined (summarized in Chapter 2).
5. According to the design estimates, the costs of creating the infrastructure of the facility are determined (chapters 1, 3-7).
6. Costs for chapter 8 are determined by the standards from the total for chapters 1-7 (temporary buildings and structures).
7. Costs for chapter 9 are determined by the standards from the total for chapters 1-8 (winter rise in price and other costs).
8. Costs for chapter 10 are determined by the standards from the total for chapters 1-9.
9. Costs for chapter 12 are determined by the normative total for chapters 1-11.
10. By summing the costs for chapters 1-12 plus VAT, the cost of building the facility is determined.
Additional indirect costs to the developer are estimated in the range of 0.5-10% of the costs for chapters 1-12.
Then, the replacement cost of improvements to the object is determined by an increase in C by the amount of entrepreneurial income (PP).
When using the basic-index method, the construction cost calculations were carried out in basic prices based on aggregated indicators of the basic cost by type of work (UPBS BP).
The transition from the prices of the base year 1991 to the current one was carried out using the appreciation indices (index method), and the latter, in turn, were determined taking into account the actual exchange prices for materials and energy carriers. When calculating by the index method, the cost indicators of resources were taken according to the RCCS data as of the date of the assessment, January 1.
The calculations were performed in the environment of Excel spreadsheets using the APM-appraiser Ap-Pro-2.0 program.
3. Calculation of the replacement cost by the comparative unit method is based on comparing the cost of a unit of consumer properties (1 m2 of area, 1 m3 of building volume, 1 parking space, etc.) of the assessed object with the cost of a similar unit of measure of a similar standard object.
When applying this method, to determine the replacement cost, indicators of unit values are used, taken from special reference books and collections. TO regulatory framework the method under consideration includes the collections "Composite indicators of replacement cost" (UPVS). These collections contain data on the replacement cost of typical objects (units of consumer properties) according to information.
When carrying out the calculations, an electronic program (written on the basis of the UPVS collections) was used to find and analyze typical objects, further adjustments for differences in design solutions from the object of assessment.
The adjustment as of the valuation date was carried out using indices (deflators) published quarterly by the Regional Center for Pricing in St. Petersburg Construction. This adjustment is made by double recalculating prices at the valuation date.
During the calculations, several variants of analogous objects (greenhouses) were selected and considered, similar in purpose, design solutions, composition and types of engineering equipment. Of these, one analogue was finally selected as a standard one.
Assessment of entrepreneurial profit
In order to take into account the estimated income from its sale in the value of real estate and reflect the total risks of the developer (investor), a certain value must be added to the amount of construction costs, reflecting the typical (normal) expected profit of the developer. Its size is expressed in money or as a percentage of the cost of creating these improvements and appears as component the cost of restoring or replacing improvements.In the amount of entrepreneurial profit, the risk rate of return should be taken into account, as well as the risk associated with the sale of this type of real estate on the market. Profit market data is difficult to obtain as it is most often protected as a trade secret. Values in the range of 10-30%, usually taken on the basis of interviews with entrepreneurs, are not substantiated in any way. In particular, appraisers do not pay attention to the fact that this profit depends on the volume and timing of construction, on whether the functions of the investor (customer) and builder (contractor) are separated from other factors.
Thus, the determination of the magnitude of the entrepreneur's profit within the cost-based method of real estate appraisal remains one of the pressing problems of appraisal. Some modern approaches to assessing the profit of an entrepreneur are based on the principle of investment alternatives: it makes sense to invest in new construction only if the profit from a construction project is not less than the profit from an alternative project that has the same level of risk and the same duration. as new construction.
1. Calculation of the entrepreneur's profit using the unrecovered investment method.
The economic meaning of unrecovered investment is based on the concept of "opportunity cost" or "lost profits from a temporary capital freeze." Capital in monetary or material form is required to "work" or generate income. If the capital temporarily does not generate income for objective reasons, its owner incurs losses equivalent to the interest on this capital. After this time, it is reasonable to assume that the owner will evaluate his capital, taking into account the lost interest on it.
Thus, unrecovered investment is the future value of the flow of capital investments (expenses) for the creation of an object as a source of income, or, which is the same, the amount of costs for its creation accumulated by the date of operation of a profitable asset at a certain rate of interest.
Thus, the entrepreneur's profit is equal to the value of the opportunity cost or the difference between the unrecovered investment and the direct sum of the costs of creating a property.
The total cost of construction costs (construction cost) of the building (before calculating the entrepreneur's profit) is 376,188,000 rubles.
The typical construction time for such a facility is eight blocks. The results of calculating the entrepreneur's profit used in the assessment of the building are given.
2. Methods for assessing the profit of an entrepreneur based on the analysis of behavior patterns of a potential investor.
Let's make the following assumptions:
1. The value of the property, determined on the basis of the cost approach, is equal to its market value.
2. It is assumed that in all the projects under consideration, transactions of purchase and sale of a real estate object are carried out at market value.
3. It is assumed that the investor, at the time of making a decision to purchase or build an object, has the entire amount necessary to purchase an object at a price equal to the market value.
In this case, it is assumed that the investor expects to invest the entire available amount. In this case, when choosing an option that involves a phased investment (for example, during the construction of an object), a reasonable investor will want the temporarily unused funds to also generate income.
In the event that the amount of funds that an investor can and wants to invest significantly exceeds the value of the object, he will most likely be able to invest temporarily surplus funds in a similar project with the same rate of return.
The replacement cost is determined by the costs in current prices for the construction of an object with an estimated equivalent utility, but built in a new architectural style using modern design standards and progressive materials and structures, as well as modern equipment real estate object.
Which of the two values (replacement or replacement) to take to determine the value of the assessed object is decided by the appraiser based on the possibilities of implementing one or another calculation method in a given situation. However, from a practical point of view, it is more preferable to use the restoration cost, since the replacement creates an object that is different from the estimated one.
There are four main ways to determine the replacement value of a property.
1. Based on the estimated construction cost, or quantitative analysis method.
Construction budget - a documented plan for the receipt and expenditure of funds to finance construction costs.
This method consists in drawing up estimates for the construction of a given object, as if it were being built again. First, it is necessary to draw up a quantitative list of all materials and equipment and make a calculation of the labor costs required to install each element, that is, determine the direct costs. To these must be added indirect costs (insurance payments, interest and taxes paid during construction, architects' fees, management costs, etc.), as well as the developer's profit.
This is the most time-consuming method for determining the value of an object, although it can be greatly facilitated if the old estimates for the object being evaluated are preserved according to which this object was built. Otherwise, the expert appraiser will need the help of a specialist estimator who develops estimates for the assessed object using the Uniform norms and prices and price indices for construction and installation work.
Construction and installation works (CMP).
The main wage construction workers.
The cost of materials, semi-finished products, parts and structures.
Operating costs of construction machines and mechanisms.
Total direct costs (DOC)
Overhead (HP)
Total costs of the contractor (cost price С = ПЗ + НР)
Planned savings (PN)
Total contractor price (replacement cost of construction and installation works Sv_smr = С + ПН)
The cost of purchasing engineering equipment (AO).
Other costs of the developer related to construction.
Costs for design estimates and survey work.
Costs associated with land acquisition.
Costs by customer function.
Payment of lawyers and other consultants.
Insurance payments.
Taxes.
Selling expenses.
Ongoing expenses from the time of completion of construction to the sale.
Other costs.
Total other costs of the developer (PZZ)
Total costs of the developer (ЗЗ = Sv smr + ЗО + ПЗЗ)
Developer's profit (PR)
Total cost of the object (Sv about = ЗЗ + ПЗ)
Index method.
It provides for the adjustment of the book value for the corresponding index in accordance with the Regulation on the procedure for revaluation of fixed assets (funds) of enterprises and organizations, approved by Decree of the Government of the Russian Federation No. 1233 of November 25, 1993. Indices for revaluation of fixed assets are approved by the government of the Russian Federation and are periodically published in the press.
Comparative unit method.
A method for estimating construction costs by multiplying the adjusted value of the unit selected for calculating the property (taken as a guideline) by the number of units of the property being valued. Units of measurement can be 1m2, 1m3, 1 place, etc. If an appraiser cannot find a recently built comparable object, you can use the developments of the Central Research Institute of Economics and Construction Management, which produces specific cost indicators per consumer unit of construction products for typical types of buildings and facilities at baseline, current and forecast price levels based on quarterly resource prices.
4. Method of splitting into components.
This method uses cost indicators for individual building components, including their installation (costs of excavation, installation, finishing, etc.).
The cost of property according to the cost approach is determined on the basis of replacement cost less all types of accumulated depreciation: physical, functional and external.
The replacement cost of the property is understood as the full cost of the costs that the owner would incur if he were to completely replace this property with similar new objects at market prices and tariffs existing at the valuation date, including the costs of acquisition (construction), transportation, installation ( installation) of objects, for imported objects - also customs payments, etc.
When assessing the market value of property using the cost approach, there are three types of depreciation:
- - physical;
- - functional;
- - external (economic).
Physical deterioration is a decrease in the value of property due to the gradual loss of the technical and economic qualities originally laid down during the creation under the influence of operation, natural and climatic factors, as well as human life.
Functional depreciation is a decrease in the value of property caused by the emergence of new technologies, materials or technological principles, which leads to excessive capital costs in existing property, its incomplete use, and the impossibility of expanding or modernizing facilities.
External (economic) depreciation is a form of depreciation, which is a decrease in the value of property due to the economic, political, environmental situation both in the region and in the immediate vicinity of the location of the object.
The cost method has a number of limitations when evaluating objects with a long service life due to the difficulties in measuring the values of accumulated wear. In addition, the cost approach does not adequately reflect market expectations from the use of the property being valued. Therefore, the level of value determined by the cost method is one of the points of view in determining the market value and is used mainly as an addition or component to display the final value.
The main emphasis in determining the market value of a property is on the sales comparison method or the income capitalization method. The costly method remains, as it were, in the background. However, in the overwhelming majority of cases, the estimate obtained by the cost method is a necessary component for the derivation of the final value of the market value.
The replacement cost (AR) of the construction of the property being appraised is calculated at current prices as of the appraisal date, excluding accumulated depreciation.
It can be calculated based on the cost of reproduction or the cost of replacement. The choice of calculating the indicated values requires a certain justification and depends on many factors: the purpose of the assessment, the quantity and quality of the collected information about the subject of assessment, its physical characteristics, etc.
Reproduction cost - the cost of constructing an exact replica of the building being appraised at current prices as of the actual appraisal date using the same building materials, standards and design.
Replacement cost - the cost of constructing an object of equal utility at current prices as of the actual valuation date using modern materials, standards, designs and architectural solutions.
It is more preferable to calculate the cost of "reproduction", since otherwise the costs of constructing a building that differ from the one estimated by many characteristics are determined. At the same time, the assessment of the difference in the usefulness of the compared buildings is very subjective.
The choice of calculating the cost of "replacement" is reasonable if the building being assessed has signs of functional wear, which reduces the commercial attractiveness for a potential buyer.
Full replacement cost (PVS) - the replacement cost of fixed assets, reflected in the book value, taking into account the associated costs necessary to start operating the assets (mostly relevant for the active part of fixed assets).
The determination of the replacement cost is based on the calculation of costs associated with the construction of an object and its delivery to the customer. Depending on the procedure for accounting for these costs, it is customary to distinguish direct and indirect costs in the cost of construction.
Direct costs are costs directly related to construction.
These include:
- * the cost of building materials, products and equipment;
- * workers' wages;
- * the cost of structures and utilities associated with the construction;
- * price utilities;
- * the cost of delivery and storage of materials, etc.
Indirect costs - costs not directly related to construction:
- * the cost of investment in land;
- * fees to design and estimate organizations;
- * marketing, insurance and advertising costs and other costs.
Overhead costs are also included in indirect costs. Overhead costs - cash necessary to create general conditions for construction production, its organization and maintenance.
Profit of the developer (investor) - entrepreneurial income, which is a reward to the investor for the risk associated with the implementation of a construction project.
Depending on the purpose of the assessment and the required accuracy of the calculation, there are several methods for determining the replacement cost:
- * method of comparative unit;
- * breakdown method by components;
- * quantitative survey method.
The comparative unit method involves calculating the cost of constructing a comparative unit (1 m2, 1 m3) for a similar building. The cost of the comparative unit of the analogue should be adjusted for the existing differences in the compared objects (layout, equipment, property rights, etc.).
To calculate the total cost of the evaluated object, the adjusted cost of a comparison unit is multiplied by the number of comparison units (area, volume). To determine the amount of costs, various reference and regulatory materials are usually used (OPSS - enlarged indicators of the cost of construction, UPVS - enlarged indicators of replacement cost).
The calculation of the value of the property is made according to the formula
Co = Cm2 Sо Kp Kn Km Kw Kpz Knds, (3.13)
where Co is the cost of the evaluated object;
Cm2 - the cost of 1 m2 of a typical structure at the base date;
Sо - area of the evaluated object (number of comparison units);
Кп - coefficient taking into account the possible discrepancy between the data on the area of the object, obtained in the BTI (Bureau of Technical Inventory), and the construction area (Кп = 1.1-1.2);
Кн - coefficient taking into account the existing discrepancy between the evaluated object and the selected typical structure (for an identical object Кн = 1);
Km - coefficient taking into account the location of the object;
Кв - the coefficient of time, taking into account the change in the cost of construction and installation works (CMP) in the period between the base date and the date at the time of assessment;
Кпз - coefficient taking into account the developer's profit (%);
Knds - coefficient taking into account VAT (%).
An important step when using this method is the choice of a typical object (analog), for this it is necessary to take into account:
- * single functional purpose;
- * proximity of physical characteristics (class of structural systems);
- * comparable chronological age of compared objects;
- * other characteristics.
Since in most cases the basis for comparison is the cost of a comparative unit not of an identical object, but of a close analogue, the cost of an object calculated using the comparative unit method is the replacement cost.
The information base for the given calculation methodology can be a quarterly publication of the consulting company "KO-INVEST" "Price indices in construction" (interregional information and analytical bulletin, from which you can get information on the dynamics of current and forecast prices for buildings, structures, construction and installation works , materials, structures, technological equipment in all regions of Russia).
The component breakdown method differs from the previous one in that the value of the entire building is calculated as the sum of the values of its individual building components - foundations, walls, floors, etc. The cost of each component is obtained based on the sum of direct and indirect costs required for the device of a unit of volume according to the formula
Czd = (? Vj Cj) Kn, (3.14)
where Szd is the cost of building the building as a whole;
Vj is the volume of the j-th component;
Cj is the cost per unit of volume;
Кн - coefficient taking into account the existing discrepancy between the evaluated object and the selected typical structure (for an identical object Кн = 1).
The quantitative survey method is based on detailed quantitative and cost calculations of the costs of installation of individual components, equipment and construction of the building as a whole. In addition to calculating direct costs, it is necessary to take into account overheads and other costs, in other words, a complete estimate of the reconstruction of the evaluated object is drawn up.
The quantitative survey method is the basis for using the above methods for calculating the replacement cost; it gives the most accurate results compared to them. At the same time, this method is the most labor-consuming, therefore the appraiser must have in-depth theoretical training and significant practical experience.
There are four main methods for determining reproduction (replacement) cost:
· Method of comparative unit (unit cost) - the corrected value of the unit of measurement chosen for calculating the real estate (m², m³, 1 piece, running meter, etc.) is multiplied by the number of units of the object being assessed
St = (S 69+ S P i69) ´ Wasps ´ Km ´ C 84 ´ Kn ´ Kz´ Knds (1)
where St- full replacement cost of the object as of the date of assessment;
S 69- the specific value of the basic aggregated indicator of the replacement cost of a typical object in 1969 prices;
NS i69 - i-th amendment to specific indicator in 1969 prices;
Wasps- construction volume, m³;
Km- coefficient taking into account the location of the object;
K 84- a complex coefficient that converts prices from 1969 to prices from 1984,
Kn- regional index, taken according to the data of the Office of State Non-departmental Expertise of the Yaroslavl Region by type of work and structures as of the date of assessment to prices in 1984.
Kz- coefficient taking into account the developer's profit;
Knds- coefficient taking into account VAT.
· Item-by-item method of calculation - the method of breaking down into components consists in determining the unit cost of a unit of measure of an object based on item-by-item costs (for materials, labor, for earthworks, installation, etc.);
· Estimated method of calculation - drawing up object and summary estimates for the construction of a given object, as if it were being built again (the most time-consuming method);
· The index method of assessment determines the replacement cost of an object as the product of the book value and the index established by the Government (Goskomstat) of the Russian Federation.
2.2. Wear assessment.
Wear assessment. Depreciation is the loss of value over time due to various factors. In value terms, the accumulated depreciation is the difference between the replacement cost and the market price of the item at the date of valuation. Depending on the reasons causing the loss of value, depreciation is divided into three types: physical depreciation, functional wear, wear and tear of external influences.
Eliminate wear - it is wear and tear, the elimination of which is physically possible and economically feasible, i.e. the costs incurred for the elimination of this or that type of wear increase the value of the object as a whole.
The cumulative accumulated depreciation is a function of the object's lifetime. Consider the life cycle of a building.
Figure 2 - Life cycle of buildings
* May increase due to reconstruction, refurbishment, modernization or changes in conditions;
** May be more than the actual age of the building.
Economic life (EL)- the length of time during which the object generates income. During this period of time, the improvements carried out contribute to the value of the property. Improvements reach the end of their economic life when their contribution to the value of the site becomes zero due to their aging.
Physical life span (VF)- the period of operation of the building, during which the state of the load-bearing structural elements of the building meets certain criteria (structural reliability, physical durability, etc.). The physical life of an object is laid down during construction and depends on the capital group of buildings. Physical life ends when the object is demolished.
Chronological age (XB)- the period of time that has elapsed from the day the object was put into operation until the date of assessment.
Effective age (EE) based on an assessment of the appearance of the house, taking into account its condition, design and economic factors affecting its value.
Remaining Economic Life (ESL) The building represents the period of time from the date of the appraisal to the end of the economic life of the house, and it must be calculated by the appraiser.
Physical deterioration- this is a loss of value due to natural processes during operation. It manifests itself in aging and wear, decay, decay, rusting, breakage and structural defects. This type of wear can be both removable and irreparable. Recoverable physical wear and tear (ie wear that can be eliminated as a result of maintenance) includes planned repairs or replacement of parts of the facility during daily operation.
Functional (moral) deterioration is a loss of value due to the relative inability of a given structure to provide utility in comparison with a new structure created for the same purpose. It is usually caused by poor layout, inadequacy of technical and functional requirements in terms of size, style, durability, etc.
Functional wear can be either removable or irreparable. Functional depreciation is considered recoverable when the cost of repairing or replacing obsolete or unacceptable components is beneficial or at least does not exceed the added value and / or cost. Otherwise, the wear is considered irreparable.
Physical and functional wear and tear are usually inherent in the property itself.
Functional wear refers to the loss of value as a result of the inconsistency of the project, materials, building standards, design quality with modern requirements for these positions. Likewise physical wear and tear Functional wear is measured by the cost of repairing it.
In terms of current market standards, functional depreciation is caused by:
· Disadvantages requiring the addition of elements;
· Shortcomings requiring replacement or modernization of elements;
· “Super-improvements” ((positions and elements of the structure, the presence of which is currently inadequate to the modern requirements of market standards).
External wear or economic wear caused by factors external to the subject of assessment: changes in economic, ecological situation, legislative changes. In most cases, it is unrecoverable due to the unchanged location, but sometimes it can “remove itself” due to a positive change in the environment.
The following methods are used to estimate the amount of accumulated depreciation:
o Direct inspection method- accumulated depreciation is estimated as percentage losses from the replacement cost of the object. The judgment on the amount of wear based on the results of the inspection of the object is made by the appraiser on the basis of practical experience or the conclusion of a construction expert;
o Direct market comparison method. Based on the analysis of the prices of transactions with comparable objects, the market reaction to different kinds and the degree of wear. The selling price of each comparable item is deducted from the item's original replacement cost. As a result, the values of the accumulated depreciation for each of the comparable objects are obtained, on the basis of which the accumulated depreciation of the object of appraisal is determined. This method does not address the causes of wear. However, when available, it is the most accurate;
o Lifetime method. The actual age of improvement is estimated, which is then divided by the known economic life of the object being assessed.
I = (EV: VF) · 100 = [EV: (EV + OSF)] · 100,%
I = [EV: (EV + OSEZH)] · 100,%
o Capitalization method for rent losses - is used to assess the functional and external wear
o Capitalization method for excess operating costs, necessary to maintain the building in proper order. It is used to assess functional wear.
Thus, the value of the property calculated using the cost approach is determined by the formula:
PC = PCsu + (BCu - I), where
RSU - market value land plot;
ВСу - restoration (replacement) cost of improvements (building);
And - the total accumulated wear of the improvements.
Before we start talking about the valuation of fixed assets, let us express an idea, the essence of which looks somewhat seditious. It lies in the fact that for an accountant, the term "fixed assets" presupposes, first of all, the value reflection of the presence of property capital, which the organization has. The material content of this phrase in accounting is very secondary.
In fact, there is no fundamental difference in accounting work, how many products are planned to be produced today on a specific machine installed in the workshop. Its material indicators serve in accounting work only as identifiers that allow the "personification" of the object. All accounting procedures for any object are performed in its monetary, value terms.
This is what makes the valuation of fixed assets of particular importance for all aspects of the accountant's work in accounting for fixed assets.
Types of fixed assets valuation
In the management activities of any organization, a normatively established system of assessing the value of property is used, which is used for various purposes of value measurements - accounting, analysis, forecasting, the formation of accounting, statistical and tax reporting data.
Any private situations, such as sale, transfer on account of barter transactions, receipt by an organization of a loan under collateral schemes, determination of the amount of insurance compensation or judicial settlement of property disputes, are conducted on the basis of the data determined in this property valuation system.
There are three basic types cost estimates applied to the fixed assets of the enterprise:
- Initial;
- Recovery;
- Residual.
Here we should immediately mention the term "book value", which is used in accounting to denote an estimate. In practice, it is often assumed that the initial and carrying values are completely identical. However, this is not entirely true.
The borderline point that makes the difference between them is the case of revaluation of fixed assets. The cost of revalued items is a replacement cost, and these items are subsequently taken into account in the balance sheet.
The property objects acquired after the revaluation are accepted on the balance sheet in their initial assessment. The amount at which both those and other fixed assets are taken into account is the balance sheet. However, in terms of economic content, the carrying value of some is replacement value, while others are original.
This is evidence that, in practice, property accounting is carried out in a mixed form of estimates. Further, to designate the cost at which fixed assets are accounted for, we will use the concept of "book value", if necessary, indicating the category of its filling, initial or replacement.
The initial
Determines the value at which the property was registered as a fixed asset. The formation of the initial appraisal of the property is directly dependent on the method of its receipt.
When buying or creating or building, the initial amount is formed on the basis of the aggregate of the actual costs of acquiring or creating. In case of receipt in the form of a contribution to the authorized capital, the initial cost is set according to the assessment agreed by the founders. The basis for the formation of the initial amount upon receipt under exchange agreements (barter) is the amount of material assets transferred in return. If the objects are received free of charge, the current market price similar.
In addition, in all cases, when forming the initial amount, the costs of delivery, storage and installation, as well as other costs directly related to the implementation of the object, are taken into account.
Subsequently, the initial carrying amount, as a rule, remains unchanged. A change in the original amount may occur in the process of its clarification during revaluation or carrying out activities that significantly change the state of the object. At the same time, such a change can be both an increase, in cases of major repairs or modernization, and a decrease in the case of partial liquidation.
Restorative
In practice, situations arise when the current book value ceases to correspond to the actual economic situation in the market. In this case, the organization can exercise its right to revalue the property. During the revaluation, the balance sheet value of the fixed asset is adjusted taking into account the data on the market value of the costs of creating or purchasing an object identical to the revalued one.
As a result of the revaluation, the replacement cost of fixed assets is established. It is the replacement amount from that moment that is taken as their book value. To establish the amount of an object in the restoration assessment, various sources of information can be used, including:
- Information of companies producing identical objects;
- Information about the price level obtained from state organizations or special public sources;
- Expert assessment by independent specialists
- It should be noted that in the future, previously revalued fixed assets must be revalued so that no significant differences arise in terms of their current replacement cost for the revalued items.
Residual
For the full management of economic processes, economic information about the state of property capital plays an important role. One of its main indicators is the residual property valuation, defined as the difference between the book (original or replacement) value of fixed assets and the amount of depreciation.
Thus, the residual valuation of an object reflects that part of the value of a fixed asset that has not yet been transferred to the product being manufactured.
The depreciated value determines the degree of deterioration of the property and identifies the need for its renovation. Funds with zero residual value should be removed from the property due to their economic inefficiency.
In cases of reconstruction, modernization, major overhauls, completion of fixed assets, there is an increase in their residual value in the amount calculated by the sums of the costs of these activities.
Some points related to the valuation of fixed assets in tax accounting
Both in accounting and in tax accounting, there is one system of categories - initial, replacement and residual values. However, it should be noted that the final results of the formation of the initial cost for accounting and tax registers may differ.
Often this is due to the moment of accounting for the amount (exchange rate) differences arising in the process of acquiring objects, the payment for which is determined in relation to foreign currency. The sum (exchange rate) difference in such cases is determined as the difference between the ruble equivalent of the debt on payment in currency terms at the date of its occurrence and the date of its repayment. Differences are calculated at the official rate set by the Central Bank of the Russian Federation.
In the Regulations defining the accounting procedure for fixed assets, the difference between the exchange rates that arose during the settlement period for the acquired property is included in the costs incurred by the company upon receipt of fixed assets. At the same time, the Tax Code, namely Article 256, unambiguously interprets the exchange rate difference as belonging to the category of non-operating income or expenses.
The result is an increase or decrease in the "bookkeeping" original book value of fixed assets in relation to the original estimate calculated for tax purposes.
Also, article 264 of the tax code provides food for discrepancies. A number of types of costs, in accordance with this article, attributable for tax purposes in accordance with this article to other costs associated with production and sale, on the basis of RAS, can also be included in the initial cost of the property.
It is equally important to take into account the restrictions imposed by the tax code on the procedure for determining the restoration amount of an object. Chapter 25 establishes that the inclusion in the composition of income or expenses taken into account in taxation includes only those revaluation results that were taken into account before 01.01.2002.
The results of revaluations made later, or the results of revaluations made before the specified date, but taken into account after it, are not accepted for determining replacement cost and calculating depreciation for tax purposes.
