Glossary

External Obsolescence “is an element of depreciation; a defect, usually incurable, caused by negative influences outside a site and generally incurable on the part of the owner, landlord, or tenant.”1

An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions.

Financial Accounting Standards Board (FASB), established in 1973, is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP). 

Form 941 is an important payroll tax form used by employers to report withholding amounts for federal income taxes and FICA taxes (Social Security and Medicare), employer payments for these withholding amounts, and any amounts due to the IRS.

A method of inventory valuation and management that assumes goods are sold or used in the same order they were purchased. When an item of inventory is sold, the cost of the oldest inventory on hand is deemed the cost of goods sold.

A method of inventory valuation and management that assumes goods are sold or used in the reverse order they were purchased. When an item of inventory is sold, the cost of the newest inventory on hand is deemed the cost of goods sold.

Factoring is the process by which a factor buys the receivables of a client, at a discount. The receivables are due from the client’s customers, referred to as the “account debtors.”

Fair market value (FMV) is the price that a person interested in buying a given asset would pay to a person interested in selling it for the purchase of the asset or asset would fetch in the marketplace.