In the case of using the Income Capitalization Approach, the following mandatory provisions are met:
1. Used only to assess property that generates revenue (income producing property).
2. perform analysis of financial reports during the assessment item 5 (five) years since the establishment or when standing less than five (5) years from the grantor assignment.
3. make adjustments to the financial statements, especially related to the assessment process, which analyzed
4. use at least five (5) data comparison.
5. create a net operating income projections based on the results of the analysis
6. use the net operating income as a percentage factor constant assessment.
7. The method can be used in the approach of income, among others:
a. Gross Income multiplier (gold thread); value produced by the method obtained with gold thread convert potential gross income with a certain constant. Gold thread method can be used when the requirements, among others: selling the property market data available; Property, which analyzed the object with the assessment as required in terms of physical, location, and characteristics of investment and income data used the property as required according to income data used objects assessment . Things must be done in the use of gold thread method, among others: Conducting estimation of the value of the sale of the properties of the object assessment; Conducting magnitude estimation of potential gross income from the property of the object assessment; Distributing the value of selling the properties comparable with gross revenue potential comparable properties to get the gross income multiplier; Conducting gross revenue estimate, an assessment of potential objects; Calculating the value of the object through the assessment multiplication gross income multiplier with a gross income of the assessment of potential objects, and to reveal the data comparison used in the assessment report.
b. Direct Capitalization; In making the assessment method using direct capitalization requirements, among others: The net income per year estimated that the amount fixed, during the investment and the duration of the investment is infinite or criticism (perpetuity). Step-step minimum required to be undertaken in the use of Direct Capitalization method, among others: Obtain data on income and expenditure items of property assessment and comparison; Conducting estimation of potential gross income the amount of the assessment object; Conducting magnitude estimation and the level lacuna loss of income from the object assessment ; Calculating effective gross income by reducing the level of vacancies and loss of income from the total gross revenue potential; Conducting a total cost estimate, the amount of operational, consisting of fixed costs, variable costs and reserves; Calculate the net operating income to reduce the total operational cost of effective gross income; Setting the level of capitalization; Calculating the value of the item assessment by multiplying the net operating income with the level of capitalization, and disclose data on the properties of comparison used in the assessment report.
c. Discounted cash flow (DCF), and the object or the value of the assessment obtained by (multiplying the discount rate by a certain) series of income that will come into the value now; steps to the minimum required to be undertaken in the use of the DCF method, among others: the analysis of income and assessment of the expenditure items for at least five (5) years unless the new company was established; to calculating estimation potential gross income (income potential gross) by considering, among others: the reliability of the assumptions used; historical data used and the cost of rent and the area building. reduction of income to do with the level of potential gross vacancy (Vacancy collection and loss) conducting addition of other income and gross income potential after vacancy reduced level for an estimated gross income effective (effective gross income); determine the costs of operations (operating expenses ), By considering, among others: the reliability of the assumptions used; historical data used and the cost of building maintenance. reduce the gross revenue with cost-effective operational cost for a net operating income before interest and taxes; determine the discount rate, with the mandatory provisions meet: discount rate used to convert income economy that will be received in the future become a value that reflects the time value of money and realization income uncertainty over the economy; set the discount rate used, compulsory Evaluation: calculate the cost of equity, with attention: the level of yield that investors expected as compensation related to the placement of funds in an investment risk, and estimates of inflation. The data yield from the investment of comparable (comparable Investments); Identifying risk assessment of specific objects; identify sources of financing used; define the elements that debt can be classified as elements of capital structure; calculate the percentage of capital structure or the level of leverage the company uses the data level market interest from the average bank to perform the functions of financing for the business world, in terms of determining the interest cost debt, both short term (debt working capital) or long-term (debt investments); make adjustments in the event of a debt financing with interest rates of different with the market interest rate to reflect the risk that comparable companies in the assessment or object; calculate the discount rate by using the cost of capital weighted average (weighted average cost of capital) that factor loading based on historical data object evaluation and disclose the reason, assumptions and calculation process discount rate used in the assessment report. Discounted rate determine the procedures and discounted net operating income (net operating income) for estimation value of the property.
d. Residual Technique. The value of land or buildings acquired by reducing the net operating income from properties of the object assessment of annual income and land or building capitalization.
8. Valuer compulsory responsible for the adjustments made
9. Projections for the rate of economic income by using the income approach.
10. Projection is part of the assessment process for estimation flow of income to the assessment of the object by using the discount rate in accordance with the level of income assessment objects.
• Projections are obliged to use the income approach.
• In Projection, compulsory Evaluation: report analyzing profit and loss; and make adjustments to projections obtained from the management.
• Adjustment used as a working paper Evaluation. Information required adjustments to the financial results disclosed in the report Evaluation.
• In making the adjustments valuation obliged to do the following: Analyze and present a report back from the object of profit and loss assessment and consistently use the functional currency of similar value that adjusts reported to be the fair value and adjust the income and expenses to a reasonable level the results of ongoing; valuation compulsory responsible for the projections have adjustment
1. Used only to assess property that generates revenue (income producing property).
2. perform analysis of financial reports during the assessment item 5 (five) years since the establishment or when standing less than five (5) years from the grantor assignment.
3. make adjustments to the financial statements, especially related to the assessment process, which analyzed
4. use at least five (5) data comparison.
5. create a net operating income projections based on the results of the analysis
6. use the net operating income as a percentage factor constant assessment.
7. The method can be used in the approach of income, among others:
a. Gross Income multiplier (gold thread); value produced by the method obtained with gold thread convert potential gross income with a certain constant. Gold thread method can be used when the requirements, among others: selling the property market data available; Property, which analyzed the object with the assessment as required in terms of physical, location, and characteristics of investment and income data used the property as required according to income data used objects assessment . Things must be done in the use of gold thread method, among others: Conducting estimation of the value of the sale of the properties of the object assessment; Conducting magnitude estimation of potential gross income from the property of the object assessment; Distributing the value of selling the properties comparable with gross revenue potential comparable properties to get the gross income multiplier; Conducting gross revenue estimate, an assessment of potential objects; Calculating the value of the object through the assessment multiplication gross income multiplier with a gross income of the assessment of potential objects, and to reveal the data comparison used in the assessment report.
b. Direct Capitalization; In making the assessment method using direct capitalization requirements, among others: The net income per year estimated that the amount fixed, during the investment and the duration of the investment is infinite or criticism (perpetuity). Step-step minimum required to be undertaken in the use of Direct Capitalization method, among others: Obtain data on income and expenditure items of property assessment and comparison; Conducting estimation of potential gross income the amount of the assessment object; Conducting magnitude estimation and the level lacuna loss of income from the object assessment ; Calculating effective gross income by reducing the level of vacancies and loss of income from the total gross revenue potential; Conducting a total cost estimate, the amount of operational, consisting of fixed costs, variable costs and reserves; Calculate the net operating income to reduce the total operational cost of effective gross income; Setting the level of capitalization; Calculating the value of the item assessment by multiplying the net operating income with the level of capitalization, and disclose data on the properties of comparison used in the assessment report.
c. Discounted cash flow (DCF), and the object or the value of the assessment obtained by (multiplying the discount rate by a certain) series of income that will come into the value now; steps to the minimum required to be undertaken in the use of the DCF method, among others: the analysis of income and assessment of the expenditure items for at least five (5) years unless the new company was established; to calculating estimation potential gross income (income potential gross) by considering, among others: the reliability of the assumptions used; historical data used and the cost of rent and the area building. reduction of income to do with the level of potential gross vacancy (Vacancy collection and loss) conducting addition of other income and gross income potential after vacancy reduced level for an estimated gross income effective (effective gross income); determine the costs of operations (operating expenses ), By considering, among others: the reliability of the assumptions used; historical data used and the cost of building maintenance. reduce the gross revenue with cost-effective operational cost for a net operating income before interest and taxes; determine the discount rate, with the mandatory provisions meet: discount rate used to convert income economy that will be received in the future become a value that reflects the time value of money and realization income uncertainty over the economy; set the discount rate used, compulsory Evaluation: calculate the cost of equity, with attention: the level of yield that investors expected as compensation related to the placement of funds in an investment risk, and estimates of inflation. The data yield from the investment of comparable (comparable Investments); Identifying risk assessment of specific objects; identify sources of financing used; define the elements that debt can be classified as elements of capital structure; calculate the percentage of capital structure or the level of leverage the company uses the data level market interest from the average bank to perform the functions of financing for the business world, in terms of determining the interest cost debt, both short term (debt working capital) or long-term (debt investments); make adjustments in the event of a debt financing with interest rates of different with the market interest rate to reflect the risk that comparable companies in the assessment or object; calculate the discount rate by using the cost of capital weighted average (weighted average cost of capital) that factor loading based on historical data object evaluation and disclose the reason, assumptions and calculation process discount rate used in the assessment report. Discounted rate determine the procedures and discounted net operating income (net operating income) for estimation value of the property.
d. Residual Technique. The value of land or buildings acquired by reducing the net operating income from properties of the object assessment of annual income and land or building capitalization.
8. Valuer compulsory responsible for the adjustments made
9. Projections for the rate of economic income by using the income approach.
10. Projection is part of the assessment process for estimation flow of income to the assessment of the object by using the discount rate in accordance with the level of income assessment objects.
• Projections are obliged to use the income approach.
• In Projection, compulsory Evaluation: report analyzing profit and loss; and make adjustments to projections obtained from the management.
• Adjustment used as a working paper Evaluation. Information required adjustments to the financial results disclosed in the report Evaluation.
• In making the adjustments valuation obliged to do the following: Analyze and present a report back from the object of profit and loss assessment and consistently use the functional currency of similar value that adjusts reported to be the fair value and adjust the income and expenses to a reasonable level the results of ongoing; valuation compulsory responsible for the projections have adjustment
