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In developing an appraisal of an interest
in a business enterprise or intangible asset, an appraiser must:
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(a) |
be aware of, understand, and correctly employ
those recognized approaches, methods and procedures that are necessary
to produce a credible appraisal;
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Comment:
Changes and developments in the economy and in investment theory have
a substantial impact on the business and intangible asset appraisal profession.
Important changes in the financial arena, securities regulation, financial
reporting requirements, and law may result in corresponding changes in
appraisal theory and practice.
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(b) |
not commit a substantial
error of omission or commission that significantly affects an appraisal;
and
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Comment:
An appraiser must use sufficient care to avoid errors that would significantly
affect his or her opinions and conclusions. Diligence
is required to identify and analyze the factors, conditions, data, and
other information that would have a significant effect on the credibility
of the assignment results.
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(c) |
not render appraisal services
in a careless or negligent manner, such as by making a series of errors
that, although individually might not significantly affect the results
of an appraisal, in the aggregate affect the credibility of those results.
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Comment:
Perfection is impossible to attain, and competence does not require perfection.
However, an appraiser must not render appraisal services in a careless
or negligent manner. This Standards Rule requires an appraiser to use
due diligence and due care. |
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