ERIC ED359934: [Appraisal of Audiovisual Materials.]

46 Pages·1993·1.2 MB·English

by  ERIC

DOCUMENT RESUME
ED 359 934
IR 016 154
AUTHOR
Johnson, Steve
TITLE
[Appraisal of Audiovisual Materials.]
INSTITUTION
Behavioral Images, Inc., Bloomington, IL.
PUB DATE
93
NOTE
46p.
AVAILABLE FROM
Behavioral Images, Inc., A4 Carriage House Plaza, 901
E. Grove St., Bloomington, IL 61701-4200 (free; $3
shipping and handling).
PUB TYPE
Guides
Non-Classroom Use (055)
Reference
Materials
Bibliographies (131)
Reports
Evaluative /Feasibility (142)
EDRS PRICE
MF01/PCO2 Plus Postage.
DESCRIPTORS
*Audiovisual Aids; Bibliographies; *Check Lists;
Court Litigation; Definitions; *Economic Factors;
Educational Technology; *Evaluation Methods;
*Evaluators; Glossaries; *Instructional Materials;
Resource Materials; Value Judgment
IDENTIFIERS
*Value Analysis
ABSTRACT
This document consists of four separate handouts all
related to the appraisal of audiovisual (AV) materials: "How to Work
with an Appraiser of AV Media: A Convenient Check List for Clients
and Their Advisors," helps a client prepare for an appraisal,
explaining what is necessary before the appraisal, the appraisal
process and its costs, the kind of research an appraiser may do, and
ways audiovisual materials can be valued; (2) "Glossary of Technical
Terminology: A-B-C Guide to Critical and Analytical Nomenclature Used
in the Appraisal of A/V Media Assets" defines terms commonly used in
the financial appraisal of audiovisual media, including a variety of
aural and visual recorded properties, with their related rights and
(3) "Reference Citations Used in A/V Media Appraisal" is a
materials;
bibliography of 216 sources relating to appraisal;
(4) "Media
Appraisal Consultants MAC Selected A/V Appraisal Matters: Case
Summary Report--Confidential" lists some of the types of appraisals
that have been done, demonstrating the value of appraisal in setting
the value of donation and sales, and property involved in litigation.
(SLD)
********************************************************************
Reproductions supplied by EDRS are the best that can be made
from the original document.
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.
MEDIA
AN APPRAISER OF AV
HOW TO WORK WITH
Advisors
List for Clients and Their
A Convenient Check
Prepared By Dr Steve Johnson
CLIENT PREPARATION
telephone
materials before our first meeting or
Assemble and organize relevant
I should be aware
effort and delay. From the beginning,
consultation to save considerable
appraised.
that remotely bears on the media
of and have access to everything
stored in a remote location.
copies of media and documents
I need access to originals or
material.
materials, I may ask for additional
Following our initial review of
conflicting details or
be confirmed or apparently
Dates and other facts may need to
inferences may require interpretation.
is unavailable, avoids delays.
especially when the information
[Ti Your timely response,
Draft Appraisal Report.
and thorough review of the
You are responsible for a pJmpt
serious errors of
the Draft Appraisal Report may cause
Deciding to skip or only to skim
later.
fact and interpretation to correct
SURVEY SERVICE
PRELIMINARY APPRAISAL
collection, you may be
potential value of an audiovisual
If you are unaware of the
based on a
I offer a preliminary appraisal survey,
appraisal.
reluctant to invest in a full
of potential
preliminary appraisal suggests a range
brief survey of the media. The
fide appraisal:
following many steps in a bona
It is a quasi-appraisal,
appraisal values.
and reporting.
Initiation, engagement, research,
is a feasibility study used
the preliminary appraisal survey
The primary difference is that
It represents an appraisal-in-
initiate an actual appraisal.
by you to decide whether to
also can be used in a subsequent
work completed for the survey
progress, since the
appraisal.
for a preliminary appraisal
usually charge a one-time flat fee
Another difference is that I
subsequent appraisal.
of which reduces the cost of a
survey, the total cost
insurance coverage
is also often useful to establish
A preliminary appraisal survey
premiums.
THE APPRAISAL
PLANNING AND SCHEDULING
antique,'or
closely than you would with a real estate,
Cl Prepare to work with me more
schedule for
I have a firm plan and careful
It is important that you and
jewelry appraiser.
deadlines,
the responsibility and the
If you understand and accept
completing the work.
finished on schedule.
will be more reliable and can be
the Final Appraisal Report
when
time may be required, even
because considerable periods of
El Schedules are important
and questions
I may discover facts, issues,
photograph.
appraising only a single film or
Locating and securing
value.
establish the property's highest
that must be resolved to
in the plan.
take time and must be included
documents and confirming facts can
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HOW TO WORK WITH AN APPRAISER OF AV MEDIA
A Convenient Check List for Clients and Their Advisors
If you intend to use the media for a charitable contribution tax deduction, I need to know
[-
This becomes the deadline for
the exact date anticipated for filing the IRS return.
completion of the appraisal and the appraisal report document.
If other appraisals exist or will be completed, I need to know the details and understand
the other appraisal efforts and goals.
If so, I should be
You may not need the Final Appraisal Report by a specific date.
informed. Giving me a flexible schedule may reduce the ultimate total cost of the
appraisal.
THE AV MEDIA APPRAISAL PROCESS
Each step includes a specific task and
A media appraisal project has several basic steps.
I conduct
Following project initiation, you and I sign a letter of engagement.
documents.
I select the most appropriate
research regarding all aspects of the audiovisual media.
approach to monetary valuation and prepares a draft appraisal report document. Finally, I
document.
prepare and submit a final certified, signed, and dated appraisal report
INITIATION
Ll An appraisal usually starts with a telephone call, a letter of inquiry, or my client
questionnaire that you complete and return to me. This stage identifies the material to be
I may ask you to
appraised, the goals of the appraisal, and completion deadlines.
I review your schedule and decide if your objectives can
complete a brief questionnaire.
If so, the process continues to the next phase.
be met.
Li If not, I may send a Letter of Declination to you.
LETTER OF ENGAGEMENT
Following the initial interview, I prepare a Draft Letter of Engagement and send it to you
I send a Revised Letter of
If further considerations arise.
for review and approval.
You should authorize work on an appraisal only
Engagement to identify additional tasks.
after signing a Letter of Engagement.
ri If the media property to be appraised is extensive or presents special problems in other
Priorities,
regards, it is often wise to segment the materials into blocks or modules.
schedules, and tees can be established block-by-block as ete work proceeds.
Prepared by Dr Steve Johnson
Page 2
3
HOW TO WORK WITH AN APPRAISER OF AV MEDIA
A Convenient Check List for Clients and Their Advisors
RESEARCH
This expectation is
The research stage is the activity most people expect of an appraisal.
accurate as far as it goes. You must participate fully in the appraisal, even if you have
no experience with media.
ri A further complicating factor must he considered. The appraisal of audiovisual media
I am familiar with
requires me to take a multi-disciplinary approach to the material.
Specialists in many fields may
many diverse fields of artistic and commercial endeavor.
contribute, including such diverse craftspeople as writers, photographers, costumers,
sound recordists, preservationists, film chemists, and marketing staff. This factor
increases the time spent on an appraisal.
For
I also may have to consider many similar forms of media in a single project.
[
I
Ilowever,
example, photography commonly exists as negatives, transparencies, or prints.
photographs can also be printed on jewelry, clothing, and other chemically sensitized
Each of these may be produced at different times and locations.
material or objects.
They may be created by different individuals using various development, printing, and
Sound recordings involve several creative and technical fields in
mounting processes.
their commercial and artistic development and recording. This complexity increases the
time required for an appraisal.
I Another problem involves locating some or all the materials and documentation.
[
Materials may be stored in a commercial studio, bank vaults, attorney's office, laboratory
warehouse, or even your home. You must inform me of the exact location of materials
and arrange for me to have access to them. This may he as simple as scheduling visits to
your home or as complex as sending formal letters of authorization to custodians.
El It may he necessary to ship some or all the materials to me for cataloging and evaluation.
11 What about protecting the audiovisual media from damage and loss before assigning it to
me? You can postpone restoration or remounting until consulting me. This helps to
insure quality and proof of value often inadvertently destroyed in such processes. My
ultimate goal and that of a conservator may he similar, but the appraisal process can he
hampered by premature or inappropriate preservation and conservation techniques.
For instance, a signature or identification stamp on the back of a photograph can be
destroyed or hidden by refraining to museum and archival preservation standards.
I Subtle details, such as type of adhesive or mounting board, are useless to me when
l
obliterated by restoration work.
ri You, or someone knowledgeable about the media, must assemble and deliver all available
documentary evidence, in any form, concerning the materials to be appraised.
Another important task is a thorough search for existing lists and bibliographies
I may perform part or all of this preliminary function but I
concerning the media asset.
will need help from you in locating the materials. These may include biographical
Prepared by Dr Steve Johnson
Page 3
AV MEDIA
AN APPRAISER OF
110W TO WORK WITH
Their Advisors
List pr Clients and
A Convenient Check
other significant
work of the creator, collector, or
information about the life, times, and
contributors to the media.
bills of sale, paid
evidence of ownership, including
Li It is important to identify any
copyright,
If anyone ever registered the
certificates.
invoices, or copyright registration
certificates from the U.S.
be found, order new
but the copyright certificates cannot
registered the works, a copyright
If it is unclear whether anyone
Copyright Office.
search.
specialist conducts a copyright
disorganized, or nearly fmgotten.
will be scattered, incomplete,
I Often, relatcd materials
establish and justify the property's
I
evidence upon which I can
Yet they can represent vital
is
provide this evidence, which
make the necessary effort to
monetary value. You must
consuming,
phase are many and time
My tasks in this research
vital to your self interest.
complexity of the materials to
depending on the scope and
extending over a long period,
be appraised.
I assess and
of the materials.
scrutinize the physical details
Li One of my first tasks is to
and prints.
master recordings,
physical condition of negatives,
report damage in the
but a critical
This is not a mere listing,
and duplicate materials.
0 I inventory the original
analysis of value characteristics.
catalog/data base used for
I document
preservation of the materials.
used and the degree of
I identify the processes
dubs, or prints.
of distribution copies,
and physical condition
the number, manufacturer,
the monetary worth of
considerations in determining
These factors are important
audiovisual media.
TO VALUATION
SELECTING AN APPROACH
valuing audiovisual media
tasks is selecting an approach to
11 One of my major professional
in valuing a
approaches is the obvious choice to use
Usually, one of these tame
property.
fully understand your
It is important that I
collection.
particular media property or
appraisal goals.
for
consider the best approach
analyzing the collection, I also
1 While reviewing and
I consult
I
approach, I conduct research.
After choosing the valuation
valuation.
opinion of experts in
and occasionally the
proprietary data bases, academic sources,
various related specialties.
THE COST APPROACH
subjects that no
If the item deals with
the items appraised.
I The cost of reproducing
with materials
I
I also use this approach
be appropriate.
longer exist, this approach may
from a
An example is footage
reproduce and to restore.
that would be very costly to
foreign
special arrangement with a
in a remote location by
major musical film made
government.
Prepared by Dr Sieve Johnson
Page 4
OF AV MEDIA
HOW TO WORK WITH AN APPRAISER
Their Advisors
A Convenient Check List for Clients and
THE MARKET APPROACH
available in the marketplace. To
1 Values of comparable items of audiovisual media now
I
of today's replacement cost of equivalent or, identical property
use this method, the value
particularly complex because market
is a basis for valuation. This method of valuation is
For example, photographs
value depends on changing conditions, opinions, and seasons.
Similar
auction and gallery prices.
that are in very high demand often command high
only very occasionally offered on
photographs may be available in limited quantities and
the auction block to intense market interest.
THE INCOME APPROACH
subject
In applying this method, I consider the
LI Future revenues the media can produce.
potential
Certain classes of audiovisual property have
property as an investment entity.
Producers often create media to produce revenue
earning power that can be forecast.
from the sale, rental, and lease of copies.
DRAFT APPRAISAL REPORT
This is a
of financial value to you.
I This document presents the first assessment
or the
Final Appraisal Report
It is a different document from the
preliminary document.
identifies all the materials in the
Draft Appraisal Report
The
Appraisal Summary.
the major items in the collection.
I
collection and usually assigns a monetary value to
In certain cases, the value
items in groups of similar items.
may consider lesser valued
In
with both low and high values.
of an item may have to be estimated as a dollar range
Draft Appraisal
I transmit the
of values.
such cases, I usually give reasons for the choice
such matters as completeness and factual
to you for review and comment on
Report
correctness.
presented. This stage of the appraisal
.1 You do not comment on the monetary values
I
It is I, not you, who attest to the
misunderstandings.
process sometimes leads to
monetary value of an audiovisual asset.
to you.
Draft Appraisal Report
the
There are several sound reasons for sending
LI
Draft Appraisal
of the materials. The
r1 You are eager to learn the approximate value
of its value. Only appraisers establish value.
Report gives you a preliminary estimate
carefully to catch misstatements of facts or
Draft Appraisal Report
I You should review the
I-
additional information or
After reading the report, you may suggest
unsound estimates.
since media involve complex
documentation. This is a common occurrence,
valuation.
artistic/commercial aspects that impact my final
additional audiovisual assets.
1_1 Sometimes, this report also helps to identify
Prepared by Dr Steve Johnson
Page 5
OF AV MEDIA
HOW TO WORK WITH AN APPRAISER
Clients and Their Advisors
A Convenient Check List for
There are many valid reasons
this report.
I You should not overlook or fail to understand
to you for careful scrutiny.
Draft Appraisal Report
for me to transmit the
FINAL APPRAISAL REPORT
I prepare and transmit
fact and interpretation,
After making all changes and corrections of
complete, detailed
The appraisal repot t document is a
Final Appraisal Report.
the
used in
I also describe the resources and procedures
accounting of the items appraised.
the itemized and
In addition, the report documents
applying the facts to the appraisal.
detail, and
appraised. The scope, contents, organization,
aggregate values for the items
items,
Each depends on the collection of
is unique.
Final Appraisal Report
length of each
quality of
the appraisal, and the extent and
the valuation method, the purpose of
supporting documents.
INVENTORY
which
description of the content of every segment to
I prepare a comprehensive, detailed
I I
list of each :Thu
For a film, for example, this includes a
a value will be assigned.
history and a quality report on
It also includes a production
times.
sequence with running
the condition of each negative, master, or copy
the media. The inventory also describes
of a film or other recording.
BIOGRAPHY
the origin of
the creator, or the owner, bearing on
I write a biographical account of you,
knowledge, talent, popularity,
It includes data about special
the appraised property.
standing.
training, experience, and professional
MERITS
publicly screened, performed, published,
summarize awards and reviews of media
El
I
screenings, and exhibitions.
It includes lists of prizes, festival
exhibited, or distributed.
copies of
audience statistics and citations to or
It may provide estimated cumulative
critical reviews of the audiovisual media.
EVIDENCE LOG
items included in
in relation to the media. Typical
Li I log documents that I examined
productions, or photography are bills,
evidence logs for motion pictures, video
on-location
copyright registration certificates,
correspondence, production schedules,
income
It may include an account of royalty
photographs, and sound recordings.
balanced against expenses.
Prepared by Dr Steve Johnson
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7
OF AV MEDIA
HOW TO WORK WITH AN APPRAISER
and Their Advisors
A Convenient Check List for Clients
PHYSICAL INSPECTION
I state the conditions of
point of view.
I itemize and describe the media from a physical
I-1
and documents.
I also describe the conditions of related materials
the examination.
of physical property.
Typically, I personally inspect each individual item
SELECTION OF A VALUATION APPROACH
Ordinarily, one approach is the
approach.
I describe and justify the chosen appraisal
I
resulting from more than one
In special cases, I may discuss values
obvious choice.
method.
KEY FACTORS
value.
bear on the audiovisual media property's
I identify and justify the key factors that
f
1
of significant topics; the work of a noted
These could include unique or rare coverage
of notable persons, places, and events; and
filmmaker, photographer, or artist; treatment
historic or ethnographic documentation.
RESOURCE LOG
valuation. They may include comparable
list the resources I consulted in making the
I
I
documents, and a list of consultants who
audiovisual media, price lists and catalogs,
assisted in the appraisal.
REASONING
explains the
used to arrive at the valuation. This
1 report the specific line of reasoning I
E-1
external data, and expert opinion I used
judgments of critical factors, supporting evidence,
variability of value
description frequently shows the range or
to arrive at estimates. This
It can justify the value assigned.
estimates made.
APPRAISED VALUE
each item. The appraisal report gives a separate
I assign an itemized monetary value for
Li
whole when appraising several items. This
total value for the aggregated collection as a
singly or in
calculated total of individual items valued
may be a greater value than the
in U.S. dollars.
groups. The value is ordinarily
MY QUALIFICATIONS
media
education, professional training, professional
I present my qualifications, including
I-1
This includes
specific to the appraisal.
experience, and any other considerations
It may list
appraisal associations.
professional membership in bona fide professional
completed, excluding names and other details
typical recent appraisals made and projects
to assure confidentiality.
Prepared by Dr Sieve Johnson
Page 7
APPRAISER OF AV MEDIA
HOW TO WORK WITH AN
and Their Advisors
A Convenient Check List for Clients
CERTIFICATION
It includes the valuation and
in the report.
I sign a certificate to attest to (he information
I
Letter of
in the
of interest, as well as many points included
my statement of no conflict
Engagement.
LETTER OF DISENGAGEMENT
to you. This
Letter of Disengagement
I write a
I1 Following the conclusion of the appraisal,
Final Appraisal Report
that accompanies the
Cover/Transmittal Letter
also may be the
Document.
THE APPRAISAL PROCESS
is a pragmatic, organized, professional
I The apparently mysterious appraisal process
I choose an appraisal
for the appraised media.
activity that determines a monetary value
f depend on an effective working
project.
method that best meets the needs of the
media is often more complex than
relationship with you. Appraising audiovisual
basic steps,
Each media appraisal project has several
appraising other types of property.
include
task and documents. These stages
each of which includes a specific appraisal
valuation, and the draft and final appraisal
initiation, research, selecting an approach to
reports.
FEES
1 am an experienced professional.
representative.
1 am not a commissioned sales
F.1
service to you:
1-1 Two factors determine the value of my
the
do not possess, particularly regarding
1) Specialized knowledge and experience you
under appraisal; and
value characteristics of the media property
interested
Internal Revenue Service, and other
2) An informed opinion that you, the
parties can accept with trust and confidence.
DONATION
value
deduction. my fee cannot be based on the
If you donate assets to a charity for a tax
I
I
Revenue
business sense, and Internal
Professional appraisal standards, sound
of the gift.
prohibits
practice. The Internal Revenue Service
Service regulations all argue against this
Appraisal ,S'ammaly
The IRS requires an
appraisals.
such a basis for setting the lees for
Prepared by Dr Steve Johnson
Page 8
9
OF AV MEDIA
HOW TO WORK WITH AN APPRAISER
Their Advisors
A Convenient Check List for Clients and
I can never base fees on the
where you or I, or both, attest to the basis of fee setting.
IRS deduction.
amount of the appraised value allowed as an
TOTAL CHARGES FOR TIME PLUS EXPENSES
My
I charge for time spent, plus direct and overhead costs.
Like most professionals,
I
I
prevailing rates for comparable
cumulative knowledge, experience, and skills, plus
hourly rate
I typically quote an appraisal fee based on an
services, determine the rate set.
of hours required to
I usually compute an hourly rate for an estimate
or a total charge.
estimate of the time and effort required to
appraise your property. The total charge is my
complete the entire appraisal project.
FEES
FACTORS THAT INFLUENCE APPRAISAL
base
I can allocate certain costs over a broader
Li When an appraisal includes many items,
and quote a lower rate.
I may quote a premium rate.
ri If you require me to meet a tight deadline,
bill these.
associated with the appraisal.
I generally exclude direct and indirect costs
I
1
I
of the Letter of Engagement.
costs directly to you according to terms
weeks or months and 1 may bill you twice-
I.1 Appraisals frequently extend over several
Appraisal Report Document. Billing
monthly or with interim documents, such as a Draft
retainer fees, must
for partial prepayment for services and for
terms, including provisions
I submit a written tee estimate as a part
Engagement.
be clearly identified in the Letter of
of the Draft Letter of Engagement.
before beginning o work with me provides
1 Assembling and organizing relevant material
reduce my total charges.
It saves time for both you and me and may
several advantages.
thoroughness and reduce cost.
I Maintaining flexibility in scheduling can assure
I
END OF CHECK LIST
INC. All Rights Reserved
Copyright 01993 by BEHAVIORAL IMAGES,
Grove St., Bloomington IL 61701
Suite A4 Carriage House Plaza, 901 E.
FAX.[phone]
Phone [phone]
Prepared by Dr Steve Johnson
Page 9