Expert valuation report

What it means

An expert report is a professional opinion by an expert entered in the register of experts, interpreters and translators kept by the Slovak Ministry of Justice. In it, the expert answers specific questions, such as the value of a property, machine, business or receivable, or the cause of damage.

The law requires an expert report in many situations: for an in-kind contribution to a company, for the contribution of a business, for certain transfers of assets between a company and its shareholders or directors, in court and administrative proceedings, and in some cases for valuation for tax purposes.

An expert report has prescribed elements: identification of the expert, the brief, the documents and methods used, the analysis, the conclusion and the expert’s clause. The expert is responsible for the report’s accuracy, and a knowingly false report can lead to criminal liability.

How it works in practice

For in-kind contributions or a business valuation, we help clients prepare the documents the expert needs: financial statements, contracts, asset lists and plans. The quality of the inputs directly affects the quality of the report and how long it takes.

When choosing an expert, we recommend checking that they are registered in the field and specialism matching what is being valued. A property valuer may not be authorised to value a business or securities. The scope of authorisation is shown in the register.

In the accounts, the expert report is the basis for valuing assets acquired by contribution and, for transfers between related parties, supports showing that the price was at arm’s length under transfer pricing rules.

What to watch out for

An expert report is not automatically beyond challenge. The other party, a court or the tax authority may dispute it and request a review report. If the expert relied on incomplete or incorrect information, the conclusion is easily called into question.

An expert report has limited shelf life. Asset values change, and a report prepared a year ago may not reflect the current position. When using it for a specific transaction, check the valuation date and whether it meets the legal requirements.