The Development of Valuation in Taiwan and Harmonization with International Standards

• Main Authors: Chou, Jen-Chieh, 周仁杰
• Other Authors: David M. Chen
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/97220875987920655435

碩士 === 輔仁大學 === 金融研究所 === 91 === Appraisal is a process to render a fair evaluation of a defined value of a property. It has to be accomplished by an experienced and objective third party so that the appraised price can convey the desired credibility expected by both the buyer and the seller, or by both the creditor and the debtor. Appraisal is a catalyst to business transactions, especially for properties that are short of a regular and open market. Appraisal must build on creditable standards and considerations that are generally referred to as the valuation system. Valuation system has been developed in Europe and North America for a long time. The improvement in the soundness of the system and the advancement of business activities reinforce each other. In Taiwan, professionals who are permitted to serve as appraisers are grouped into five categories under current regulations. They are (1) real estate appraisers, (2) certified accountants, (3) certified architects, (4) independent parties permitted by the competent authority for financial assets valuation, and (5) institutions permitted by the competent authority for the appraisal of intellectual properties. These five categories of appraisers are subjected to different regulations issued from different competent authorities, summing together, are subjected to guidance and restrictions scattered in 19 different administrative ordinances. All these indicate that Taiwan is short of an Appraisal Law based valuation system. Financial markets in Taiwan are currently undergoing revolutionary changes, reliable real estate and financial products appraisals are in urgent need to make transactions in the capital market transparent. This adds up to the motivation for us to build a cohesive valuation system. The purposes of this thesis are twofold. First, the trend of movement from historical cost based accounting to fair value based accounting requires a sound valuation system. Second, the global integration of capital markets requires that valuation systems used in other countries, together with their experience and considerations, be taken into consideration in developing domestic standards and practices. This thesis should provide a useful reference to the design of a modern valuation system in Taiwan.