In reaching a conclusion, comparison of assets usually involves adjustments due to the individuality and uniqueness of each asset. Transactions are often influenced by sentiment, bias, specific needs, politics, familiarity, lack of understanding, and other conditions not considered by the impartial appraiser.

An appraisal cannot be guaranteed, nor can it always be proven. The opinion of value can however, be substantiated and the final opinion is the result of a thorough professional analysis of a vast quantity of data. An appraisal must not be considered absolute but should be used as a basis of negotiations between concerned parties, whatever their interests.

The valuation process involved in Plant and Equipment appraisal is an orderly procedure for arriving at an estimate of value systematically performed under the USPAP Standard (Universal Standard of Professional Appraisal Practice – the Internationally recognised Standard for Appraisal Standards) . By following this procedure the appraiser begins with a preliminary study of the problem involved and defines the basis from which the appraisal is to be made. A program is then initiated for the accumulation, analysis, and observation of data. The data called for in the preliminary study is then gathered, classified and analysed.

In assignments to estimate fair market value, the ultimate goal of the valuation process is a supported conclusion that reflects the appraiser’s study of all influences on the value of the assets being appraised. Therefore, the appraiser studies the assets from various applicable viewpoints.

Various approaches are interrelated, and each involves the gathering and analysis of sales, activity, and value data in relation to the assets being appraised. From the analysis the appraiser derives separate indications of value for the assets being appraised. One or more approaches may be used, depending on their applicability to the particular appraisal assignment.

To complete the valuation process, the appraiser integrates the information drawn from the market research and analysis of data and from the application of appraisal techniques to form a conclusion. This conclusion may be an estimate of value or a range in which the value may fall.

Avantia Corporate Services are committed to court defensible valuation Reports prepared by our sister organisation Absolute Certified Equipment Appraisals . which is part of an Internationally Affiliated Group of 300+ offices involved in P & E Valuations with access to over 4 million comparable Items. Reports can be prepared for single Item opinions (like a truck) or whole organisational Tangible Assets (like multi centred factories) located nationally. ACEA have Certified Machinery & Equipment Appraisers in Queensland, New South Wales and Western Australia to provide national coverage.

To find out more about ACEA (now with Online Appraisals available), the Appraisal Process or to get a Quote for Services, please call our office on 07 30109711 or visit www.acea.net.au