Concept of Proportional Adjustment in Asset Value based on Ease of Accessibility

Abstract

Different approaches for asset valuation are often used based on understanding of the case specific requirements. These are based on fundamental principles that govern the rules and parameters that ensure the process, result is fair and valid. Although, some methods, are ambiguous and lack clarity. This paper intends to address ambiguity of one such method where the belting of land is used. The paper also gives logical reasoning and explanation of the concept of ease of accessibility and the proportional adjustment of value. This concept gives the criteria to test if a property is too narrow or too long along with the appropriate reduction applicable in both cases. If the property is too narrow, the reduction is computed directly from ease of accessibility. If the property is too long, the reduction is computed by Auxiliary Belting Method.