Which of the following must be explained in a Restricted Appraisal Report?

In a Restricted Appraisal Report, the requirement to explain the valuation approaches that were omitted is essential because the report typically provides a limited scope of work and is intended for a specific audience. When certain valuation approaches are not utilized, it is important to inform the user why they were omitted – this could be due to their inapplicability, data unavailability, or the client's specific instructions.

Including this information helps clarify the reasoning behind the chosen approaches and supports the credibility of the appraisal conclusion. For users who rely on the report, understanding which methods were not considered and why ensures transparency and helps them evaluate the value conclusion more accurately. This is particularly important in restricted reports, where comprehensive detail is not provided, but clarity on omitted methods ensures the reliance on the appraisal by the intended user is justified.

Other options, while relevant in broader contexts, may not be necessary to include in a Restricted Appraisal Report as they do not directly relate to the specific valuation process being communicated to the client.