When using commercial software for DCF analysis, what must the appraiser include in the report?

When using commercial software for Discounted Cash Flow (DCF) analysis, it is vital for the appraiser to include the name and version of the software program in the report. This information is essential because it allows for transparency and provides details about the tools used in the analysis. By specifying the software name and version, the appraiser establishes the basis for the methodology and calculations presented, enabling others to understand the specific tools employed in the process.

Providing this information also helps maintain consistency and reliability in the appraisal process. If someone were to review the report or replicate the analysis, knowing the exact software version is crucial, as different versions may produce varying results due to updates or changes in algorithms. This level of detail enhances trust in the appraiser's conclusions and ensures adherence to the standards and regulations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP).

In contrast, while knowing the author of the software or the acquisition date may be interesting, those details do not directly impact the reliability or validity of the appraisal findings in the context of the DCF analysis.