The Uniform Standards of Professional Appraisal Practice (USPAP) recognizes two forms of reports: Appraisal Report, and Restricted Appraisal Report. The essential difference between these two options is in the content and level of information provided. A Restricted Appraisal Report is intended for a single user; usually the client. When the intended users include parties other than the client, an Appraisal Report must be provided.
Both types of reports must contain sufficient information to enable the intended users to understand the report properly and in a manner that is not misleading. A single user is typically familiar with the equipment to be appraised and its characteristics that is why a Restricted Appraisal Report, with limited detail, may be appropriate. If it is determined that the needs of the client and the intended use of the report require a higher level of information to be provided, then the Appraisal Report format should be followed.
USPAP Standard 8 (b) the Restricted Appraisal Report
"The content of a Restricted Appraisal Report must be consistent with the intended use of the appraisal and at a minimum state the identity of the client by name or type and state the use restrictions that limit the use of the report to the client and warns that the rational for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser's work file"
Due to the large number of subject properties typically included in a machinery/equipment appraisal, only summary discussions of the data and the appraiser's reasoning, and analyses are included in the report. Supporting documentation that is not provided with the report is retained in the appraiser's file. Not all specific requirements are applicable to every assignment. The depth of discussion contained in both the Appraisal Report and the Restricted Appraisal Report is specific to the needs of the user(s) for the intended use stated in the report.
Appraisal Reports are accepted on a daily basis by the courts, taxing authorities, lenders, business owners, accountants, and other users of appraisal services.