Valuation of Machine, Plant and Equipment

National Association of Valuers of Serbia

www.procenitelji.org.rs THE

EDUCATIONAL PROGRAMME

09-26 November 2016.

application to

office@procenitelji.org.rs

NAVS is member of IVSC since 2009, and TEGoVA since 2011. NAVS got the

title AMA (Awarding member Association) meaning it is the member of

TEGoVA who may promote real estate valuers for REV (Recognized

European Valuer) Certificate as a confirmation of the quality of the

valuation of real estate.

In 2016 NAVS became ISO 29990 certified training and examination center

for machinery and equipment appraiser by STAREGISTER an accredited

certification body ISO 17024.

Dear all,

Seventh year in a row National Association of Valuers of Serbia (NAVS) is organizing the

court experts' and related professionals' education in the field of real estate valuation, as

well as other persons involved with property valuation reports; but this year we make a step

forward, offering the course for „Valuation of Machine, Plant and Equipment“.

This educational course is organized in six module-days on Wednesday, Friday and Saturday,

including 36 classes in total, in the premises of the NAVS Center in Belgrade, Grčića Milenka

Str. No.39, III floor. The lecturing language will be Serbian. The additional readings will also

be in Serbian, but the English is optional. All additional readings will be delivered to the

candidates in elctronic form on CD.

The Educational Programme will be held in NAVS Educational Center (or via Internet) which

is fully equipped to satisfy the needs of this course. Rooms are air-conditioned, the classrom

is vast enough, so that each candidate could have its own table; the projector, projector

screen, magnetic board and a computer for presentations are also provided. Refreshes and

coffee are available during the breaks between letcures, as well as separate toilet for

candidates only.

The course price is EUR (To be completed).- for NAVS members and EUR (To be completed).-

for others.

The payment could be done through the legal entity also, on NAVS bank account 250-

1230000725091-13 (Eurobank). Corporative NAVS Members have 50% discount for every

additional candidate. The Final Exam price, together with a Certificate, is EUR 200.- payble in

RSD, according to official exchange rate of Eurobank, at day of payment.

If interested please submit your contact, number of candidates and company data, if paid by

legal entity. For payments from abroad we will provide additional bank instruction, with a

different bank account included.

For all information, application forms and payment instructions please send an e-mail at

office@procenitelji.org.rs

The pre-conditions or specific prepration period for candidates included by this educational

programme does not exist. There are no restrictions referring to sex, religion or nationality of

candidates.

All electronic devices (cell-phones, pagers, etc.) are not allowed during the class. All

candidates will be asked to turn off their electronic gadgets at the beginning of the class.

The number of delegates in each class shall be no greater than twenty (20).

Delegates are required to attend the full duration of the course. Failure to do so shall be

reflected in the delegate’s continuous and final evaluations. Absence from more than 5% of

the planned duration shall be a cause for failing the course.

Delegates who do not appear to understand the course material or do not participate in the

class activities will be identified. Such delegates shall be informed in private about the

instructor’s observations and if necessary, they had to be provided with extra training in

addition to typical duration of the training course.

At the end of each module, the candidates will be asked to fill the anonymous questionnaire,

designed with the goal of improving the programme.

All candidates have the right and possibility to place a complaint during the course. Those

complaints are presented in an electronic form, sending them to office@procenitelji.org.rs.

All those complaints are considered by NAVS Educational Board and after their decision the

candidate has no right to another complaint within the NAVS jurisdiction.

Furthermore, the candidate has the right not to accept the result of his complaint and to

proceed the new complaint to STAREGISTER.

Sincerely,

Danijela Ilić, FRICS, REV

NAVS President

ANNEX 1: NAVS MEMBERSHIP PROCEDURE

There are three categories of NAVS membership:

• Regular Based Membership

• Accredited Membership

• Corporative Membership

Regular based member of NAVS may be any person who is dealing with the business of property valuation, capital valuation or intangible assests valuation, or some complementary activity related to valuation, who is accepting the NAVS goals and statutory documents.

The accredited members are

• members who were attending NAVS educational courses, with respected final exams passed, or have attended similar courses of other relevant institutions, with the programme which is corresponding to the contents of the one of NAVS, with final exam successfully passed;

• those who have continued education by regular attending professional conferences, seminars and workshops organized by NAVS or other relevant institution, having programme coresponding to the one of NAVS;

• those who have at least one years as NAVS members, with the approved evidence of continued experience in valuation business;

• those who have professional insurance policy for valuation business.

Regular based membership procedure includes submitting documents at office@procenitelji.org.rs as follows:

letter showing an interest for becoming a NAVS member

a proof of university degree (diploma or certificate scanned)

personnal CV

NAVS application form with personal data included can be completed on the NAVS

web-site https://procenitelji.org.rs/registracija/

NAVS remains the right to refuse the membership application without any explanation.

After the NAVS approval, the one has to fulfill following forms:

NAVS application form obtained from the Secretariat

Evidence on membership fee paid

(Bank account of NAVS is 250-1230000725091-13 (Eurobank). Annual

membership fee is EUR 100.- paid in RSD according do the selling exchange rate

of Eurobank, at day of payment)

Evidence of internationally recognized titles for professional valuers (if existed),

such as: MRICS certificate for real estate valuation, REV, ASA certificate for real

estate valuation, as well as a court expertise professional certificate - should be

presented, all that for the purpose of qualification records of NAVS members.

Corporative membership provides to companies registered for valuation business, which have at least one employee who is accredited member of NAVS, and which apply valuation quality control procedure, additional advantages as professional insurance policy for valuation, covering significantly bigger amount than the one which could be reached by individual valuers, also NAVS members; then, a discount at educational courses prices, those organized by NAVS, etc. Annual membership fee is EUR 200.- and is payable in RSD according to the selling exchange rate of Eurobank, at the day of payment.

ANNEX 2: HOW TO FIND THE LOCATION

Educational Programme Valuation of

Machine, Plant and Equipment will

take place at Grčića Milenka Str.

No.39, corner with Gospodara Vučića

Str. at Vračar, Belgrade, entering

from Gospodara Vučića Str. on III

floor.

Line: 46, 55, 22

GPS coordinates:

Latitude: 44.792388 | Longitude: 20.489662

ANNEX 3: PLAN AND TRAINING SCHEDULE OF VALUERS COURSE

The „Valuation of Machine, Plant and Equipment“ Educational Programme will be held in Belgrade, at 39 Grčića Milenka Str. corner with Gospodara Vučića Str. at Vračar (Belgrade), entering from Gospodara Vučića Str. on III floor, from October 19th till October 29th 2016, in six separate one-day long lectures, on Wednesday, Friday and Saturday. Lectures will be in Serbian. Each candidate will get the appropriate material on CD. The schedule and time table you may find below.

NOTE: In case of unpredictable or altered situation, the organizer reserves the right to change schedule, time table or lecturer.

WORKING DAY (Monday – Friday)

TIME CONTENTS 16:00 - 16:45h Class 1

5min Short break

16:50 - 17:35h Class 2 15 min Long break

17:50 - 18:35h Class 3 5min Short break

18:40 - 19:25h Class 4 15 min Long break

19:40h - 20:25h Class 5 5min Short break

20:30 - 21:15h Class 6

END

WEEKEND (Saturday)

TIME CONTENTS 09:00-09:45h Class 1

5min Short break

10:50-11:35h Class 2 15 min Long break

11:50-12:35h Class 3 5min Short break

12:40-13:25h Class 4 15 min Long break

13:40h-14:25h Class 5 5min Short break

14:30-15:15h Class 6

END

ANNEX 4: EDUCATIONAL PROGRAMME SCHEDULE FOR VALUATION OF

MACHINE, PLANT AND EQUIPMENT

Time schedule shown below, with 19-10-2016 as day one.

Module Day Instructor Topics Hours

Module 01 Day one, Wednesday Vesna Stefanović, REV, ASAIntroduction to the program, ethical principles,

approaches to valuation, IVS and EVS Standards6

Module 02 Day one+2, Friday Vule Mizdraković, PhD

International financial reporting standards in the

process of machine, plant and equipment valuation

the national laws that proscribe instructions that

differ from international accounting regulations

Basic knowledge in the field of accounting and

financial reporting

The significance of compounding and discounting

for value measurement

6

Module 03 Day one+3, Saturday Marko Popović, PhD

Basis and premises of M&E valuation

Machinery and equipment identification

Machinery and equipment inspection

Machinery and equipment market

Information sources

Plant and equipment valuation standard IVS 220

Sales comparison approach

Elements of comparability

Comparison techniques

Applications and examples

6

Module 04 Day one+7, Wednesday Vesna Stefanović, REV, ASA

Income capitalisation approach

Applications - direct capitalization

Applications - DCF

Applications - Declining economic rent

capitalization

6

Module 05 Day one +9, Friday Marko Popović, PhD

Cost approach - IVSC TIP2

Applications - cost new

Applications - depreciation

Applications - economic depreciation

6

Module 06 Day one +10, Saturday Branislav Radulović, REV

Market Value (IVSC) - Fair Value (IFRS)

Fair Value Measurement - IFRS13 requirements

Valuation M&E for liquidation

6

Submission of homeworks Two days after the end of the module 24

Submission of reports Day one+24, Saturday 48

Exam Day one+31, Saturday 2

TOTAL (hours) 110

NOTE: In case of unpredictable or altered situation, the organizer reserves the right to change schedule, time table or lecturer.

ANNEX 5: THE EXAM

The Educational Programme organized by NAVS must end with the Final Exam (if not the commercial one, organized following the instructions of a Client). Examing The Exam consist of:

a) Preparation of the Valuation Report (estimating the Report) b) Written Exam c) Presentation and defence of the prepared Valuation Report

A. The Valuation report must be created: a) Separately for each candidate, with no group work The Subject of Valuation will be choosed by the candidate, with the chance to exercise and present their skill in creating the valuation: Direct Comparison, Income Approach, Cost Approach. The Final Report must be presented to NAVS at office@procenitelji.org.rs, not later than the date defined by the training programme. The Final Report candidate will format in PDF format, with title: FINAL_Name_Surname_ME_edu prog spring 2016 The document cannot be larger than 10MB, including all additional elements, annexes, photos and tables. Documents submitted separately will not be considered. B. At the Exam Day candidates will have the written test consting of: a) Plant and Equipment Valuation - 30 questions and 2 short cases, including 5 multiple choice questions. Candidates will martk with blue/black ink or pencil the answer they find it correct, for all 40 questions on a special form for automatic data process. Written test time is 1 minute per question and 10 minutes per case, meaning 50 minutes all together. For testing, candidates get A4 size sheet, in order to show the procedure of reaching the solution of the task. The procedure must be shown in a clear and understandable way. The Form for marking correct answers (filled):

C. After the written test is done, candidates will present their Valuation Reports to the Examination Commission. The Commission will particularly take care of following issues: a) if the candidate is a real author and if the report is made following the aforementioned rules for formatting; b) if the candidate applied material from the educational programme and if the candidate presented step-by-step conclusions, showing the basic capability to execute the mission of valuation; c) if the report is processed respecting internationally recognized standards presented in this educational programme. The oral exam lasts 20-30 minutes per Valuation Report. Evaluating A. Written test a) each correct answer 2 points b) case resolved – part of task 4 points Maximum points in written test is 100. B. The Valuation Report will be estimated applying Estimation Code for Valuation Reports (Annex 6) ; a) The Report review and contents control will be done according to internationally recognized valuation standards; b) The oral defense of Report. If the mark for presentation and defense of Report is lower for 2 points than the Report review, Commission should explain the reason. In case that some reports are rather similar one to another, the Examination Commission may decide to: - postpone the examination - reduce the mark (for 1-2 points) in case of minor similarities The decision has to be explained in Examination Commission Notes, in the lower part of Estimation Code form. To pass the test, candidates should have: - minimum mark 6 in written part of the exam consisted of 30 questions and 10 cases; - minimum mark 6 in Instructor’s Estimation; - minimum mark 6 in Valuation Report part; - minimum mark 6 in oral defense and report presentation part. C. Final mark consists of: - 40% of written test - 20% Report - 20% Report defense - 20% Instructor's Estimation The written and oral part of the exam should be organized separately.

The candidates can apply for the exam immediately after the educational programme is finished, but not later than 12 months after the educational programme ended. Candidate is allowed to repeat the unsuccessful test (written or oral), 12 months after the previous testing. After that the candidate has to attend the course again. The examinaton results will be presented to the candidates not later than 28 days beginning from the Test Day. After the Final Exam passed, candidate will get NAVS certificate confirming his presence to the course and successfully passed Final Exam. Test documentation, reports presented and reports of Examination Commission are kept in safe, in the NAVS archive, regularly marked. Candidate may review the estimation of his work not later than 10 days after the result of the exam published. The demand for this review candidate may submit to the Secretariat, at office@procenitelji.org.rs , and Secretariat is obliged to respond within 48 hours. After the review, the candidate may present his remarks by e-mail. The Examination Commission has 10 days to answer those remarks. All complaints regarding this procedure will consider the NAVS Educational Board and after its decision candidate has no right to complaint within the NAVS jurisdiction issues.

ANNEX 6: ESTIMATION CODE

IME KANDIDATA / CANDIDATE'S NAME:

PROCENA MAŠINA I OPREME / MACHYNERY, PLANT AND EQUIPMENT COURSE

Ključ za ocenjivanje izveštaja / PROJECT AND EXAM GRADING FORM DATUM/DATE:

Ponder

Weight

(max)

Total

1. KLJUČ OCENJIVANJA I VREDNOVANJA/DEFINING VALUATION ASSIGNEMENT

(1.1+ 1.2+ 1.3+ 1.4+ 1.5+ 1.6)10%

1.1. Identifikacija korisnika / User and client identification 1%

1.2. Sv rha procene/inspekcije/izv eštaja / Purpose, v aluation/inspection/report data 2%

1.3. Identifikacija imov ine / Asset identification 2%

1.4. Vrednov anje imov inskog prav a / Property rights v alued 2%

1.5. Definicija procenjene v rednosti / Definitions of estimated v alues 1%

1.6. Pretpostav ke i posebne pretpostav ke / Assumptions and special assumptions 2%

2. TEHNIČKI I FUNKCIONALNI OPIS / TECHNICAL AND FUNCTIONAL DESCRIPTION 10%

3. OPIS TRŽIŠTA I ANALIZA / MARKET DESCRIPTION AND ANALYSIS 15%

4. TROŠKOVNA METODA / COST APPROACH 25%

5. POREDBENA METODA / SALES COMPARISON APPROACH 20%

6. PRIHODNI PRISTUP / INCOME APPROACH 5%

7. USAGLAŠAVANJE I KONAČNA PRESUDA / RECONCILIATION AND FINAL OPINION 7%

8. PROCENA IZVEŠTAJA / VALUATION REPORT (8.1+ 8.2+ 8.3) 8%

8.1. Sadržaj izv eštaja / Content 2%

8.2. Oblik izv eštaja, terminologija, jasnost, logičnost / Aspect, terminology , clarity , logic of the report 4%

8.3. Dodaci (skice, fotografije, ostalo) / Graphs, sketches and photos 2%

A. IZRADA IZVEŠTAJA / MARK A TOTAL REPORT GRADING (1+ 2+ 3+ 4+ 5+ 6+ 7+ 8) 0-100% 0,00 20%

B. OCENA ZA PREZENTACIJU IZVEŠTAJA / MARK B FOR REPORT PRESENTATION 0-100% 0,00 20%

C. OCENA INSTRUKTORA / MARK C AS INSTRUCTORS EVALUATION average (9-14) 0-100% 0,00 20%

9. Module 01 0-100%

10. Module 02 0-100%

11. Module 03 0-100%

12. Module 04 0-100%

13. Module 05 0-100%

14. Module 06 0-100%

D. OCENA ZA PISMENI ISPIT / MARK D FROM WRITTEN TEST (15+ 16) 0-100% 0,00 40%

15. pitanja sa višestrukim izborom / multiple-choice questions 0-60%

16. zadaci / problems 0-40%

E. UKUPNA OCENA / FINAL AVERAGE MARK (A*0.2+B*0.2+C*0.2+D*0.4) 0,00

ISPITNA KOMISIJA / EXAMINATION PANEL NAMES Potpis / Signature

1

2

3

Komentar / Comment:

NOTES:

FILL ONLY LIGHT GREEN CELLS

DO NOT FILL OR CHANGE THE RED CELLS MARK C MINIMUM =6

MARK A MINIMUM =6 MARK D MINIMUM =6

MARK B MINIMUM =6 FINAL AVERAGE MARK MINIMUM= 6 The Examination Commission will make Notes, in the lower part of the form or in its

continuation.

THE EXAMINATION COMMISSION NOTES

Date Commission Members Signatures:

ANNEX 7: CERTIFICATE ON THE EDUCATIONAL PROGRAMME ATTENDING

AND FINAL EXAM PASSING

ANNEX 8: THE EXAMINATION COMMISSION

The NAVS Educational Board is reviewing and approving the whole material of Educational Programme „Plant and Equipment Valuation“. Each updated lecture gets the mark of a new version and in final review of educational programme, the final version is recorded. The Educational Board names the Examination Commission, with three members as minimum. When nominating the members of Commission a special care is taken that a Commission member does not have more than 50% of the lectures done as instructor. The Examination Commission examines the candidates at final exam and evaluates their final works. The Examination Commission also delegates a supervisor, who can also be a Commission member, who is suppossed to review points of the final written test; and a presence at testing is handed to the NAVS Secretary. The Commission members make an arrangement with NAVS and get a special fee defined by the contract. The Educational Board authorize the Secretariat to be in charge for soft drinks and refreshes during breaks; also, to takes care on classes records and to process the instructor's reports on candidates, their presence and marks they got in ceratin segments. The Educational Board also delegates some NAVS members as supervisors on lectures, in order to evaluate instructors and the adjustment of lectures, by making official notes on this. The supervisor presents its notes to the Educational Board, thus making one of indicators (together with final statistics, questionnaire answers and possible remarks of candidates) which will help in lecutures and the course improving. If candidate place a complaint regarding the evaluation or examing procedure, the Educational Board is the top instance. All complaints are officially recorded and answered respecting the terms indicated before. If some of the complaints are accepted and if the educational programme could be improved by applying it, the Educational Board will take further steps in that direction. The Educational Board is preparing a report to STAREGISTER containing some significant course changing, before their implementation.

ANNEX 9: INSTRUCTORS

The Educational Board makes a selection and approves the instructors for this educational programme. When selecting the instructors, the Educational Board takes care about: Instructors must: (1) be at least 28 years of age; (2) have a University degree, or equivalent; (3) have completed a Train-the-Trainer (TTT) course or similar; (4) have knowledge of using the cabinet training equipment; (5) posses specific qualifications for each field of instruction (6) be experienced in training and instructional methodologies, demonstrating skills in time management, teamwork, communication, planning and technological awareness Instructors may update their work, presentig those new versions to the Educational Board, to verify them before implementing and updating their lectures.

The instructor's report on candidates in each Module, their presence on classes and marks.

(10 is the highest mark, 6 is passing mark, 5 unsatisfactory mark).

MODUL /MODULE: Datum održavanja/Date of presentation:

čas

/ cl

ass

čas

/ cl

ass

čas

/ cl

ass

čas

/ cl

ass

čas

/ cl

ass

čas

/ cl

ass

Ocena z

a z

ala

ganje

Act

ivity

mar

k

Ocena z

a e

sej

Ess

ay m

ark

Ocena z

a v

ešt

ine

Ski

lls M

ark

Ocena n

a t

est

u

Tes

t m

ark

Ocene z

a m

odul

Module

mar

k

1 2 3 4 5 6 A B C D E

1 0,0

2 0,0

3 0,0

4 0,0

5 0,0

Prosek / Average ## ## ## ## 0,0

Napomena / Notes : Ocena/Mark E = 0.3*A + 0.25*B + 0.2*C + 0.25*D

(10 je najveća ocena, 6 je zadovol javajuća ocena, 5 i manje je nezadovol javajuća ocena)

(10 is the highest mark, 6 i s pass ing mark, 5 and less than five i s unsatis factory mark)

Instruktor / Instructor

Napomena

NotesR.b.

No.Ime i prezime

Delegate

ANNEX 10: CANDIDATES EVALUATION

The Educational Activities Council (EAC) selects and approves instructors for the educational course. If the candidate has more than 5% of absence, it looses the right for Final Exam. The instructor evaluates each and every candidate, considering different segments of every module. Besides the necessary presence, the instructor also evaluates the activity of candidates in the class. The instructor perceives each candidate through class interaction, cases proceeded, questions and the end of class testing, evaluating them in different segments: a. Instructor evaluates each delegate’s contribution to discussions, questioning of instructors, communication in the class, accurately reporting of situations and effective participation in team activities and in role playing or problems solving. Evaluates the student’s attendance, punctuality and participation in all class activities b. Evaluates the clarity and technical accuracy of the delegate’s written assignments - essay. c. Evaluates the delegate’s personal attributes, skills and professional capabilities.Evaluates the delegate’s attitude, manner and suitability as a future professional. d. Grades the module multiple choice test at the end of class Each segment is evaluated separately, marking them with 1 to 10, where 10 is the highest mark, and the final mark of the instructor is formed by pondering the individual marks, following the system:

Segment A B C D FINAL FOR MODULE

Ponder 30% 25% 20% 25% 100%

Mark Grade A Grade B Grade C Grade D 0.3*A+0.25*B+0.2*C+0.25*D

This final mark of the instructor, together with the same of other instructors, are putting together, and the average mark forms the general instructor's mark for each candidate, the one which makes 20% of the final mark for the whole course. The other parts of the course final mark are the Valuation Report (20%), defense of the Valuation Report (20%) and the written part of the exam (40%). The information on instructor's mark for each module, candidate gets by e-mail.

ANNEX 11: REFERENCES

This year, 2016, we do start with the seventh cycle of NAVS Educational Programme, where the last six of them, having in mind its content, concept and the way of organizing them, are completely in accordance with demands defined by relevant international organization for valuation standards and valuers competence. NAVS programmes are hold once or twice a year, with optimal number of candidates of 15-20, but also with special programmes organized following the demands of our clients. Candidates are mainly court experts for architecture and construction, who wish to improve their business, employees in some insurance companies or banks, who on a daily bases are facing the valuation reports. The users of our Educational Programme are:

National Association of Valuers of Serbia

2016 R E F E R E N C L I S T A

Agenc za Veštač. i Procenu „Centar“ Industrial Solution

Alpha Bank KPMG

Baker Tilly Western Balkans LB-REV DOO

Banca Intesa Ministarstvo Odbrane

BDO Business Advisory d.o.o. Ministarstvo Pravde

Binom Monet

Council of Europe Office in Belgrade NAI Atrium

CVP Centar za veštačenja i procene NLB srbija d.o.o

Danos Poreska Uprava

Data Investment PricewaterhouseCoopers

Delta Generali Osiguranje Proconing

Delta Real Estate Realtis

DHD SHM Smith Hodgkinson

Dipos Solidity Real Estate

DMK & Associates VAO Spikon

Dunav Osiguranje Stan Inženjering

EFG Property Services Sudski Veštaci

Energoprojekt-Entel Telepartner

Fakultet Organizacionih Nauka The European Bank for Reconstruction and Development (EBRD)

Fimaks Vode Vojvodine

Građevinski Fakultet u Beogradu Udruženje nezavisnih procjenjivača Crne Gore – CUP

HYPO Alpe-Adria-Bank Yu Miland

Institut za Ekonomiju i Finansije IEF Z-Sting

PROCENA ING d.o.o. REAM d.o.o.

Heta Real Estate“ d.o.o. Credit Agricole Banka AD

Adventis Real estate Management Vojvođanska banka