Appendix 10: Capital asset pricing methodologies

Use Appendix 10 to find the codes for capital asset pricing methodologies.

Last updated 2 July 2023

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

Capital asset pricing methodologies
Code	Pricing method	Description
1	Cost price	The price the seller originally paid for the asset, including ancillary costs such as freight or handling.
2	Directors valuation	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.
3	Discounted cash flow	A pricing method where the price of an asset is based on the discounted cash flow at the time of acquisition or disposal.
4	Independent valuation	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.
5	Nil consideration	–
6	Quoted market price	A price quoted on a public listed market, such as a public stock exchange, or commodities market.
7	Written-down value	A pricing method based on either the taxation 'adjustable value' or accounting residual value after depreciation has been allowed.
8	Other methods	Any other pricing method that is not mentioned in Appendix 5.

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

QC72627