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Appendix 10: Capital asset pricing methodologies

Last updated 7 August 2014

The capital asset pricing methodologies should be identified using the codes listed below.

Pricing method


Cost price


Directors valuation


Discounted cash flow


Independent valuation


Nil consideration


Quoted market price


Written-down value


Other methods


Cost price refers to the price the seller originally paid for the asset, including ancillary costs such as freight or handling.

Written-down value refers to a pricing method based on either the taxation 'adjustable value' or accounting residual value after depreciation has been allowed.

Discounted cash flow is a pricing method where the price of an asset is based on the discounted cash flow at the time of acquisition or disposal.

Director's valuation refers to a pricing method that is based on the directors' opinion of an asset's value, and not on any of the other methods listed in codes 1 to 8.

Independent valuation is a pricing method by which a suitably qualified person, acting at arm's length to both the buyer and seller, assesses the value of an asset.

Quoted market price refers to a price quoted on a public listed market, such as a public stock exchange, or commodities market.

Other methods means any other pricing method that is not mentioned in item 6.

The above pricing methods may not provide an arm's length price under all circumstances. The above examples are not an exhaustive list.