Additional guidelines or policy on monetary appraisals of archival fonds will be issued in the future.


PDF icon  Canadian Cultural Property Export Review Board Guide For Monetary Appraisals (PDF)

Canadian Cultural Property Export Review Board Guide For Monetary Appraisals

December 20, 2019

This guide provides instructions for appraisers on the information standards and recommended format for monetary appraisals prepared in support of applications for certification submitted to the Canadian Cultural Property Export Review Board (CCPERB).

1. Date of Report

Specify the date of signature of the report.

2. Effective Date

For completed dispositions: This appraisal estimates the fair market value effective as of [date of donation], the date that the object(s) was (were) legally transferred to the [Name of applicant].

OR

For proposed dispositions: This appraisal estimates the fair market value of a proposed donation and the effective date is the date of this report.

If the appraisal is completed more than one year before the Applicant (designated institution or public authority) applied for certification or the disposition is finalized, you will be required to update the appraisal in an addendum addressing any change in the market for the object(s) between the date of the appraisal and the date of the addendum or the donation date.

3. Summary and Intended Use

This report provides the professional opinion of [Name of Appraiser] of the fair market value of the object(s) identified below. It has been prepared to accompany an application for certification to the Canadian Cultural Property Export Review Board.

[Name of Appraiser] confirms that this report adopts the following definition of fair market value:

The highest price, expressed in terms of money, that a property would bring, in an open and unrestricted market, between a willing buyer and a willing seller who are both knowledgeable, informed, and prudent, and who are acting independently of each otherFootnote 1.

4. Information provided from the Applicant (designated institution or public authority)

The Applicant MUST provide the following documents and information to you. If the appraisal is completed prior to the receiving of these documents, you will be required to provide an addendum acknowledging that you have reviewed the documents and indicate if a change in the estimated value at the date of disposition is required due to information contained in those documents.

[Name of Appraiser] confirms that they have reviewed all the following documents and information prepared by the applicant:

5. Inspection

This appraisal is based on a personal inspection of the object(s).

OR

This appraisal is based on digital photographs of the object(s).

6. Description of Each Object

You may copy and paste the description information provided from the Applicant, please ensure that the objects are presented in the same order as the Applicant. For a large number of objects use a separate summary chart provided from the Applicant.

Image(s)
(When relevant, include multiple views or recto/verso)
Description
(Describe each object, including but not limited to, and as applicable)
Estimated Fair Market Value $ CAN
  • Object identification number
  • Title or Description of the object
  • Creator, Maker or Publisher (nationality, dates)
  • Date of Creation, Making or Publication
  • Edition number and size of edition
  • Medium (materials and techniques)
  • Dimensions (height x width x depth)
  • Signature and Inscription
  • Purchase Price
$XX,XXX.XX

*Add more rows as needed

7. Appraiser Qualifications

Provide a brief summary (max. 100 words) of your qualifications and expertise regarding the object(s) being appraised, this type of object(s), and the market(s) for such object(s).

8. Total Fair Market Value

In summary, based on all available information, it is [Name of appraiser]’s professional opinion that the total fair market value of the object(s) is: $XX,XXX.XX CANFootnote 3 as of the effective date of this report.Footnote 4

9. Valuation Methodology

Indicate the valuation methodology employed, or the combination of methodologies employed, and justify why the methodology(ies) is/were employedFootnote 5.

10. Market Context

11. Market Information and Comparable Sales

For sales comparison method:

Reminders:

Image Creator, Title, Date Medium Dimensions and Edition Number and Size of Edition (if applicable) Vendor Sale Date Sale Price $ CANFootnote 6 Justification for the selection of the comparable








*Add more rows as needed

12. Purchase Price

Only if purchased by the donor less than 10 years prior to the date of donation or the date the appraisal is prepared. Indicate how you took into account the purchase price of the object(s). If the purchase price is irrelevant, explain why.

13. Reasoned Justification

Explain how you arrived at the estimated value in a reasoned justification.

14. Blockage Discount (for the disposition of multiple similar objects)

Indicate if a blockageFootnote 7 discount is applicable. Explain how you applied a blockage discount or why it is not appropriate to apply a blockage discount for the disposition of the multiple objects considering the objects’ market(s).

15. Appraiser’s Attestation

[Name of Appraiser] hereby certifies that, to the best of their knowledge and belief:

16. Appraiser Signature


Footnotes

Return to footnote 1 referrer  Henderson v. Minister of National Revenue, 1973 Carswell Nat 189, [1973] C.T.C. 636, 73 D.T.C. 5471

Notable in this definition is that:

  • "Highest price" means the highest price consistently achieved, not the record price obtained under exceptional circumstances;
  • The appropriate "market" is the most active market where the object is most commonly sold; and
  • "Willing" means that neither the buyer nor the seller is under any compulsion to buy or sell.

In other words, the fair market value reflects the highest price at which an object might reasonably be expected to change hands in the normal course of business, in the usual market for that object, as supported by a consistent pattern of sales.

Return to footnote 2 referrer  Only if purchased by the donor less than 10 years prior to the date of donation or the date the appraisal is prepared.

Return to footnote 3 referrer  This amount should include any premium applied to the object(s) as a group or any blockage discount for which a reasoned justification is given in the monetary appraisal.

Return to footnote 4 referrer  For completed dispositions, you must use the exchange rates published by the Bank of Canada, on the day of donation. For proposed dispositions, you must use the Bank of Canada temporary exchange rate corresponding to the date of the appraisal report. CCPERB will calculate the final exchange rate on either the date of the decision (if the disposition has not been completed when CCPERB determines the fair market value) or the date of disposition (if the disposition is completed after the application for certification is made and before the date of CCPERB’s determination).

Return to footnote 5 referrer  CCPERB accepts two valuation methodologies: the sales comparison method and the cost method. CCPERB does not accept appraisals that employ the income method, rely on previous appraisals or on previous determinations made by the Review Board as a valuation methodology.

Return to footnote 6 referrer  For international sales comparable, you must convert the value in Canadian dollars using the Bank of Canada exchange rate at the date of each sale, not the date of the report.

Return to footnote 7 referrer  A blockage discount is used to determine the fair market value for a disposition of multiple similar objects at the same time. The application of a blockage discount is appropriate when the number of donated objects is large in comparison with the number of objects sold annually in its typical market. For reference see paragraphs 22, 23 and 24 in the Nash v. R. Federal Court of Appeal Judgment of November 21, 2005, 344 N.R.152.

Return to footnote 8 referrer  The Cultural Property Export and Import Act limits CCPERB’s jurisdiction to determining the fair market value of the physical property of an object. If the disposition of the object includes intellectual property rights or other intangible rights such as rights under a license, the appraiser cannot assign a value to these rights. Similarly, the appraiser may not use sales comparable where a portion of the price includes the monetary value of intellectual property or other intangible rights, since these sales they do not adequately reflect the fair market value of the physical property only.

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