Development of Road Sector’s Lend Valuation Method for Aims of Asset Management

The object of research is the land management processes of the road sector. The studies are based on the use of a multi-structure approach, the basic principles of the theory of complex systems and the methodology of AHP (Analytic Hierarchy Process) by Thomas Saaty. The main hypothesis of the study is the application of a multi-structure approach to valuing assets, which are not comprehensively evaluated in the study, but are considered as complex objects and are divided into simpler levels, components and elements that can be evaluated separately. The features of the valuation of land of the road sector are considered, and the main stages of the evaluation sequence are identified. It has been established that the land valuation is the main component of the valuation of the asset of the road sector, which is located on it. The results of a theoretical study make it possible to develop an algorithm for valuing land of the road sector for asset management purposes. The developed algorithm has a clear sequence in the formation of the methodology for the land valuation of the road economy, it makes it possible to justify the adoption of managerial decisions regarding the land plot, which are consistent with the goals and correspond to the nature of the tasks of the functioning and development of the road sector. The testing of the developed algorithm is performed on a real example. It is found that the algorithm allows to optimize the process of valuation and management of road assets, which is especially important within limited financial resources. The choice of land valuation options is based on criteria of economic efficiency, based on the main limitations and features of land valuation of the road sector. The results of the calculations can be a weighty basis for the formulation of managerial goals for the assets of the road sector and will form the basis for further scientific studies of the process of valuation of assets under financial constraints.


Introduction
The state road management system of the country includes the effective management of its assets. The main asset is land plots on which transport facilities and the road maintenance sector are located. An important element of the land management process is mandatory procedures, including land valuation of the road sector [1].
Management decisions on these lands are carried out using a dynamic and internally interconnected process consisting of decision-making functions that can be influenced by various factors of both the external and internal environment [2,3]. That is why the urgent task is to develop such a method that would make it possible to make effective informed management decisions regarding the va luation methods of roads.
So, the object of research is the land management process of the road sector.
The aim of research is to develop an algorithm for making effective management decisions on the valuation of land of the road sector.

Methods of research
The studies are based on developed authoring techniques described in [4][5][6]. The main hypothesis of the study is to apply a multistructure approach to the valua tion of assets of the road sector [4,5], including land. Each asset is considered as a complex object, is divided into simpler levels that contain components and elements that can already be evaluated separately.
Considering the hierarchical construction of a multistructure approach in asset valuation [5], in developing the algorithm for valuing land plots for management purposes, the AHP (Analytic Hierarchy Process) methodology by Thomas Saaty is used [6,7] (Fig. 1).
It is customary to determine the value of a land plot depending on the type of ownership of the balance holder, namely: ownership of the land, rights to use or lease (according to [4]).
The cost of the right to use the land (V l ) is determined by the formula: where V RO -the value of the right of the owner of the land plot provided for rent or use, m. u.; P mі -the actually accrued annual amount of land payment is defined as a fraction of the normative monetary value of the land plot, m. u.; R c -capitalization rate for land; n -the forecasting period (in years). TECHNOLOGY AUDIT AND PRODUCTION RESERVES -№ 2/2(52), 2020

ISSN 2664-9969
The capitalization rate is determined by the formula: where B -the risk-free interest rate; The basic risk-free rate (B) should be adopted at the level of rates on the most reliable foreign currency deposits for legal entities of banks with monthly interest accrual.
Risk compensation includes: -liquidity compensation; -compensation of conditions for investments; -compensation for the need for management; -compensation for industry risks; -other risks.
If the land plot is located outside the settlement, the value of the land plot (V l ) is determined as a normative monetary value according to [4], according to the formula: where V N -regulatory monetary value of the land, m. u.; S A -the land area, taken according to the documentation on land management, m 2 ; R I -rental income per 1 m 2 of area for the corresponding land category, which is determined by the rental income standards for the corresponding land category according to [4], m. u. in year; K P -capitalization period, years; C L -coefficient taking into account the location of land; C Ucoefficient taking into account the type of land use; C MC -coefficient taking into account the belonging of the land plot to the lands of environmental, recreational, recreational, historical and cultural purposes; C іindexation coefficient of the normative monetary valuation of land.
If the land plot is located within a settlement, the normative monetary value of the lands of settlements is determined by the formula: where V N -normative monetary value per square meter of land (in m. u.); C -costs of development and arrangement of the territory per square meter (in m. u.); P Mprofit margin (6 %); C R -capitalization rate (3 %); C F -coefficient characterizing the functional use of the land (for residential and public buildings, for industry, transport, etc.); C L -coefficient characterizing the location of the land, calculated by the formula: where C L1 -coefficient characterizing regional factors, the location of the land plot; C L2 -coefficient characterizing zonal factors, the location of the land plot within settlements; C L3coefficient characterizing local factors, the location of the land plot according to territorial planning, engineering-geological, historical-cultural, natural-landscape, sanitary and hygienic conditions and the level of arrangement of the territory. Indexation of the normative monetary valuation of land is carried out according to the formula: where І -the consumer price index for the previous year. If the consumer price index exceeds 115 percent, such an index is applied with a value of 115 according to [4].
Taking into account the indexation coefficient, the normative monetary value of the lands of settlements is determined by the formula: The cost of a single land plot (V l ) is defined as the product of a monetary value of one square meter of land and its area according to the formula: where A L -land area, m 2 .
The unit for determining the location of the land plot So, the algorithm includes the following sequence: 1. Database of incoming information about the land plot, which is the subject of management decisions, is being formed.
2. Goals of the valuation of the land plot of the road sector are determined [4,5].
3. Legal component of the valuation is determinedthe form of land ownership according to legal documents.
4. Type of monetary valuation is determined, which corresponds to the form of ownership determined at the previous stage.
5. According to a certain type of monetary valuation, a methodological approach or method of valuation is selected.
6. Valuation of the land is carried out according to the developed methodology [4].
7. Block of initial data on the estimated value of the land is formed.
8. Management decisions are taken with respect to the land plot, which are consistent with the objectives and correspond to the nature of the tasks of the functioning and development of the road sector [8][9][10].

Research results and discussion
According to the developed algorithm, it is tested on a real object -a land plot under a category II highway with a length of 1.127 m, which is located within the settlement.
According to the algorithm and [4], the procedure for conducting a normative monetary valuation of a land plot located under a highway is as follows: 1. The determination of the costs of development and arrangement of the territory.
According to [4], the base value of 1 m 2 of land in this example is 49.21 monetary units.
2. Determination of the ownership of the object of valuation of a particular economic and planning zone of the village. No zoning of the territory was carried out in this locality.
3. Determination of functional, regional, zonal and local factors (according to [4]): 4. The determination of the coefficients С L and С F : . . 0 9 1 1 0 9 This land plot belongs to the category of land transport. So, C F = 1.
5. The year of the last regulatory monetary valuation of the settlement -2013. 6. The indexation of the monetary valuation of land (according to official sources), Table 1. 8. The normative monetary value of the lands of settlements, taking into account the indexation coefficient, is determined by the formula from [4]: . . 88 58 1 9 168 30 m. u. 9. The cost of a separate land plot (V l ) on which a category II highway of 1.127 m is built is determined by the formula from [4]: , 168 30 90160 15173928 00 m. u.
The developed algorithm allows to accurately determine the reasonable cost of the land plot of the road sector. This approach allows to optimize the process of valuation and management of road assets, which is especially important within limited financial resources. The estimated error of the algorithm is about 3 % [4, 6, 7].

Conclusions
The issues of types of valuation of land of the road sector, depending on the input information and goals of managing road assets, are considered. A method for the valuation of land plots of the road sector for management purposes is developed. A feature of the algorithm is the application of a multi-structure approach in combination with the AHP methodology by Thomas Saaty. Land valuation by the given sequence is an important aspect, the main component of the valuation of the value of the asset of the road sector located on it, which further reflects the state of the transport network as a whole. This information is the basis for asset management and the supervision of the impact of various financial capital investment strategies in the road sector.