Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets provides the theoretical and analytical framework for separating the tangible and intangible assets of real estate centric businesses. Through discussion, lecture, readings, and case studies, participants will apply the theory of the firm and the concept of economic profit to the solution of problems and case studies related to ad valorem taxation, eminent domain, loan underwriting, and transaction price allocation.
An overview of business valuation procedures and clarification of real estate and business valuation terminology will be provided so participants become familiar with
the terminology relevant to separating asset values. The class will review the legal foundations for property rights, be introduced to the methodologies, and become aware of the controversial and unresolved issues in this field. Finally, participants will learn about allocating real estate, personal property, and intangible asset values.

Note. Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets contains diverse opinions regarding appraisal theory and applications. Neither this course nor the Appraisal Institute advocates a particular theory or method. Rather, each appraiser must come to his or her own conclusion based on the property type, local market customs, and scope of work.

Upon completion of the course, participants should be able to:

• Recognize operating properties as distinct from pure space properties.
• Recognize when the scope of work requires the separation of various kinds of assets to produce a credible appraisal.
•  Understand the concepts, terminologies, and economic principles that underlie the asset claims to the revenue stream .
• Understand the terminology relevant to separating asset values and the roots of that terminology in accounting, business valuation, and valuation for financial reporting.
•  Understand the complexity of valuing a property as it relates to appraisal problems, separating asset values, valuation for financial reporting.
•  Understand the legal foundations for property rights.
•  Identify when there is a need to work with a professional in another field, such as a business or tangible personal property valuers.
•  Recognize the methodology.
•  Objectively articulate the various issues that are considered controversial and unresolved.
•  Understand the parallels between the business valuation methodologies and real property valuations.

Required Text

A Business Enterprise Value Anthology, 2nd Edition (2011) IS REQUIRED FOR THIS COURSE.

Recommended Text

Intellectual Property: Valuation, Exploitation, and Infringement Damages, Gordon V. Smith and Russel L. Parr, Wiley & Sons, Hoboken, NJ (available via the Wiley bookstore by clicking here)

Note. This course is in the Valuation of the Components of a Business Enterprise Professional Development Program. For a list of FAQs, which includes information regarding the courses you'll need to successfully complete the program, click here.

Note. Effective October 1, 2011, the SBA updated their appraisal policies relative to going concern appraisals.  For more information about the SBA’s new requirement, please click here.