Turkmenistan, Ashgabat, Sept.21 / Trend, H. Hasanov /
The law "On appraisal activity" recently adopted by the Majlis in Turkmenistan, will be a powerful tool for the further development of market relations, and concretizes economic interests of business and government through effective property management, the Neutral Turkmenistan newspaper reports on Wednesday.
According to Maral Paltaeva, a member of the Turkmen Parliamentary Committee on Economy and Social Policy, who is quoted by the newspaper, a major factor to adopt this law and forming an institute of professional appraisal in the country is program of transfer to International Financial Reporting Standards, which is under implementation at present.
A method of determining value based on costs of purchase, adopted in accounting, takes into account only the initial costs and amortization charges, which come under generally accepted accounting principles, she said.
However, the property can have a market cost greater or less than the cost of purchase and correction for accumulated depreciation at any concrete time. This is especially actual for high-tech assets. In technical terms, professional appraisers determine the value of ownership rights, but not of the assets, she said.
Paltaeva said accountants make depreciation charges to recover the initial cost for assets acquisition.
A member of the Turkmen Parliamentary Committee on Economy and Social Policy Dovranberdi Annaberdiyev believes that in countries with developed market economies, property assessment is an essential and effective tool for a market economy, while appraiser profession is one of the most popular, as cost appraisal is crucial for acquirers and sellers while determining the just price of the deal.