FORESTRY APPRAISAL
The appraisal is the act or process of estimating value, an analysis, an opinion. It is defined by some as a kind of valuation aimed at real assets where there are no intangible values involved.
As forest assets are real assets where the financial return occurs in the long term, knowledge of the value of the forest through an adequate financial assessment is essential to understand the return that it will bring to its owners / investors.
Appraisals are traditionally contracted for a period of 3 years. In the first year, comprehensive appraisal is carried out, where the information collection process is more detailed than in the following two years, when only one update of the first year work is performed (update appraisal).
All forest assets belonging to investment funds must, for internal reporting reasons, have their value updated annually through an appraisal. This requirement created a lot of demand in Brazil for companies that have knowledge of the forestry market, since this experience is a fundamental part of conducting an appraisal.
The appraisal is the act or process of estimating value, an analysis, an opinion. It is defined by some as a kind of valuation aimed at real assets where there are no intangible values involved.
As forest assets are real assets where the financial return occurs in the long term, knowledge of the value of the forest through an adequate financial assessment is essential to understand the return that it will bring to its owners / investors.
Appraisals are traditionally contracted for a period of 3 years. In the first year, comprehensive appraisal is carried out, where the information collection process is more detailed than in the following two years, when only one update of the first year work is performed (update appraisal).
All forest assets belonging to investment funds must, for internal reporting reasons, have their value updated annually through an appraisal. This requirement created a lot of demand in Brazil for companies that have knowledge of the forestry market, since this experience is a fundamental part of conducting an appraisal.
Since Brazilian forest assets began to be appraised through appraisals, following international standards, the Index Florestal team combined the requirements of such standards with their experience, developing a specific method for conducting appraisals, which takes into account the requirements of the international standards and, at the same time, technical elements of the national standard, which make the final result more solid and connected with the market reality, as presented in this e-book.
Since Brazilian forest assets began to be appraised through appraisals, following international standards, the Index Florestal team combined the requirements of such standards with their experience, developing a specific method for conducting appraisals, which takes into account the requirements of the international standards and, at the same time, technical elements of the national standard, which make the final result more solid and connected with the market reality, as presented in this e-book.
Valuation is an expression widely used in the corporate world to designate the analytical process for determining the current or future value of an asset or company. Valuation is an important tool in determining the fair value of an asset, based on what the market is willing to pay at the moment and its intrinsic value, that is, the future gains that that asset will be able to provide to its investors.
As the forestry activity is an activity whose financial return occurs in the long term, the knowledge of the intrinsic value of the asset through an adequate valuation is essential to understand the return that the forest will bring to its owners / investors.
Valuation is an expression widely used in the corporate world to designate the analytical process for determining the current or future value of an asset or company. Valuation is an important tool in determining the fair value of an asset, based on what the market is willing to pay at the moment and its intrinsic value, that is, the future gains that that asset will be able to provide to its investors.
As the forestry activity is an activity whose financial return occurs in the long term, the knowledge of the intrinsic value of the asset through an adequate valuation is essential to understand the return that the forest will bring to its owners / investors.
