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A Higher Standard for Appraisal Professionals: What you need to know before selecting an appraiser


The Canadian Association of Insolvency and Restructuring Professionals has updated the Standards of Professional Practice effective this year. This includes Standard 10-2 Appraisals, which defines the duty of care that needs to be applied when an insolvency and restructuring professional member uses an appraiser. The standard is now higher than ever, challenging members to ensure they have the right person for the appraisal engagement.

When engaging an appraiser, members are now required to consider:

  1. The need for the Appraiser to have a formal professional accreditation
  2. The Appraisers capabilities, credentials, suitability and competence with respect to the property to be appraised1

As a member, you need to be selective when choosing to engage the services of a professional. You also need to understand the credentials and knowledge you are looking for before searching for and selecting an appraiser.

In Canada, members of the Appraisal Institute of Canada who hold an AACI accreditation are appropriate for appraising real property. Members with a CRA Designation can appraise residential property with four units or less.

Only an appraiser with an ASA or a MRICS designation should conduct a machinery and equipment appraisal. The American Society of Appraisers (ASA) members perform appraisals for one or more of the following: Appraisal Review & Management, Business Valuation, Gems & Jewelry, Machinery & Technical Specialties, Personal Property, and Real Property.2

The Royal Institution of Chartered Surveyors (MRICS) is a diverse community of highly regarded professionals who are experts across the property life cycle - from land, real estate and construction to investment and valuation.3 This is a designation recognized globally.

Besides looking at an appraiser’s credentials, members should seek appraisers with a wide knowledge base of and experience with the asset type. Specific industry experience should ensure a complete and reliable appraisal.

MNP understands the importance of having the right appraiser for the job. Our professional appraisers hold the above-mentioned designations and have a wide range of experience. For example, Paul Leung, ASA, MRICS, has 20 years of experience in the appraisal industry for the machinery and equipment sector. His experience includes over 500 valuation assignments for industrial assets in many industries and the application of different premises of value, including orderly liquidation for the sale of assets outside of a going concern, value of an asset in continued use and as part of a collection of assets for going concerns and replacement cost new for insurance purposes.

Chris Perret, B.Comm, AACI, CBV, has been active in valuation and consulting on a wide variety of assets since 1998. He has completed valuations on various real estate assets and small and mid-capital businesses in a range of different industries. Chris has experience with a broad range of tangible and intangible assets throughout Western Canada and has been involved with business operations throughout North America. His work includes fairness opinions, goodwill impairment tests and purchase price allocations on large private and publicly traded companies. Chris has appeared as an expert witness at the Municipal Government Board and Assessment Review Board.

Another professional on the MNP team, Matthew Tozer, B.Comm, AACI, P.App, has been active in the valuation of a wide variety of real estate assets since 2000. He has completed current and retrospective market value estimates of residential, industrial, commercial, and multi-family properties, as well as vacant land. Matthew’s Market Value Reports have been used to assist clients in a variety of situations including sale transaction negotiations, mortgage financing, matrimonial property disputes, litigation, tax planning, estate planning, determining feasibility of expansion, and company planning and development.

The updated standards will help ensure a high level of accuracy in appraisals because the right appraiser will be selected for the engagement. While it may take members time to select an appraiser, understanding what the credentials mean and what kind of knowledge to look for will help narrow the search and make the evaluation process easier.

MNP is one of the largest chartered accountancy and business advisory firms in Canada. For more than 60 years, we have proudly served our clients in the public and private sectors. Through partner-led engagements, we provide a cost-effective approach to doing business and personalized strategies to help you achieve your goals.


  1. Standards of Professional Practice No. 10-2 Appraisals, Canadian Association of Insolvency and Restructuring Professional, Pg 4