Fair Value for Balance Sheet Purposes

We provide motivated valuations of property, plant and machinery for this purpose and can also assist with all IFRS (International Financial Reporting Standards) requirements.

Market Valuations may be needed for the following reasons:

  • Purchase and Sale
  • Balance Sheet Requirements
  • Security/ Mortgage Bond Valuations
  • Merger/ Take-Over and Corporate Information
  • Legal/ Judgement Purposes
  • Expropriation
  • Privatisation
  • Municipal Valuations and Rates Objections
  • Tax Valuations
  • Auction Reserves

A well-motivated valuation report enables you, the client, to make sound decisions in your business or generally with regard to any of your asset matters.

In addition, we also assist clients with the Internal Financial Reporting Standards (IFRS) requirements whereby land and building assets may need to be apportioned for depreciation purposes. We further assist with componentisation of the assets both under buildings and plant.

DEFINITIONS

LAND AND BUILDINGS

Market Value

The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

PLANT AND MACHINERY

Value of Plant and Machinery to the Business (VPMB)

An opinion of the price at which an interest in the plant and machinery utilised in a business would have been transferred at the date of valuation, assuming:

  1. that the plant and machinery will continue in its present use in the business;
  2. adequate potential profitability of the business, or continuing viability of the undertaking, both having due regard to the value of the total assets employed and the nature of the operation;
  3. that the transfer is part of an arm’s-length sale of the business wherein both parties acted knowledgeably, prudently and without compulsion.

Market Value in Situ

The estimated amount for which an asset (as a whole in its working place) should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

MOTOR VEHICLES

These will be assessed on the basis of the average of Trade/Retail Values as outlined within the latest edition of the Auto Dealers’ Guide, with adjustments for condition and odo readings.

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