Published March 2012
The income approach in property assessment
U.Y.HuseynovaAmong number of well-known methods of enterprise (property) assessment in market relationships conditions income approach is of great importance. Income approach combines discounted money flows, direct income capitalization and equal-effect analogue. These directions have been studied; their peculiarities have been shown and main stages of income method assessment. It is also noted that the capitalization of income flow discharges the percents, accumulates the depreciation and amortization, replaces supplies; the owner compensations, discharging of main tax and debt and so on may be conducted in advance or later. The income flow is used as income forecast estimation and this in its turn, becomes known on the basis of current information analysis and last years with account of business development tendency. The features of capitalization basis selection are commented. It is shown that while potential income assessment the right choice of accounting period is very important. The algorithm of capitalization coefficient definition, its calculation for identical and different types of objections; income and income from capital repatriation; in general, connection between capitalization and discounting and etc is given. Disadvantages and advantages income approach of property assessment are shown and its usage possibilities have been studied.
