Plant, Machinery & Asset Valuations
Accounting, Financial Reporting & Expert Witness Valuations
Leeson Valuers provides independent plant, machinery, vehicle and asset valuation services for accounting, financial reporting, insurance, taxation, business and litigation purposes.
Our experienced valuers assess a broad range of tangible assets, including plant and machinery, motor vehicles, specialised equipment and other income-producing assets, providing market value and fair value assessments appropriate to the intended purpose of the valuation.
We also provide expert valuation evidence for litigation and dispute matters, assisting legal representatives, businesses, insurers, accountants and other professional advisers with independent and defensible valuation advice.
Financial Reporting & Accounting Valuations
Independent valuations of property, plant and equipment may be required to support financial reporting compliance and ensure that asset carrying values appropriately reflect the applicable accounting requirements.
Leeson Valuers provides valuation services relevant to Australian Accounting Standards and their international equivalents, including:
- AASB 3 - Business Combinations;
- AASB 13 - Fair Value Measurement;
- AASB 116 - Property, Plant and Equipment; and
- Other accounting and reporting requirements where an independent valuation is appropriate.
The benefits of obtaining an independent valuation may include:
- Establishing and supporting appropriate fair values;
- Assisting with compliance with applicable accounting standards;
- Supporting Directors in meeting their financial reporting responsibilities;
- Providing independent evidence for auditors; and
- Reducing the risk of unsupported carrying values or qualified audit opinions.
Fair Value & Market Value
The appropriate basis of value depends on the purpose of the valuation and the circumstances surrounding the asset.
For financial reporting purposes, Fair Value is generally the relevant basis of value under AASB 13. It represents the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.
Depending on the circumstances, a valuation may also consider Market Value, Market Value Existing Use, Market Value In-Situ, Market Value Ex-Situ, Orderly Liquidation Value, Forced Liquidation Value or Replacement with New Value.
Our valuers identify and apply the appropriate basis of value having regard to the purpose of the valuation, the nature of the assets and the assumptions required.
Valuation Approaches
Depending on the nature of the assets and the availability of relevant market evidence, Leeson Valuers may apply one or more recognised valuation approaches:
Market Comparison Approach
The market comparison approach determines value by reference to recent transactions involving comparable assets, with appropriate adjustments made for differences in age, condition, specification, capacity, location and other relevant factors.
Income Approach
The income approach considers the income-generating capacity of an asset or business and may be appropriate where the asset's value is closely related to the income or cash flow it is capable of producing.
Depreciated Replacement Cost Approach
The depreciated replacement cost approach considers the cost of replacing the asset with a modern equivalent, allowing for depreciation, obsolescence and other relevant factors. This approach can be particularly relevant for specialised assets where reliable comparable sales evidence is limited.
Valuation Bases
Leeson Valuers can provide valuations on a range of bases depending on the intended use of the valuation.
Market Value
The estimated amount for which an asset should exchange at the valuation date between a willing buyer and willing seller in an arm's-length transaction, after proper marketing, where both parties have acted knowledgeably, prudently and without compulsion.
Market Value - Existing Use
Considers the value of the asset or assets in their existing use and in the context of the continuing business operation, including the contribution of the assets to the existing income-generating operation.
Market Value - In-Situ
Considers the value of assets remaining in their existing location following a sale, including relevant installation and associated costs, but without necessarily assuming continuation of the existing business operation.
Market Value - Ex-Situ
Considers the value of assets on the assumption that they will be removed from their existing location following sale.
Fair Value
The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.
Orderly Liquidation Value
The estimated gross proceeds that could reasonably be achieved through an orderly sale process, allowing a reasonable period to identify purchasers and assuming the assets are sold on an “as is, where is” basis.
Forced Liquidation Value
The estimated gross amount that could typically be realised through an appropriately advertised and conducted sale or auction where the seller is compelled to sell within a limited timeframe.
Replacement with New Value / Insurance Replacement Value
The estimated cost of replacing an asset with a new asset of equivalent utility and specification, without betterment, as at the valuation date.
For plant and equipment, replacement costs may include:
- Specialist equipment;
- Freight, land or sea transport;
- Customs duty;
- Delivery;
- Design and commissioning;
- Engineering fees;
- Installation; and
- Betterment or optimisation, where applicable.
Plant & Machinery Expert Witness Services
Leeson Valuers also provides plant, machinery and asset valuations for litigation, dispute resolution and expert witness purposes.
Our experts can assist with disputes involving asset ownership, business assets, valuation differences, professional negligence, insurance claims, commercial disputes and other litigation matters.
We provide independent valuation evidence that clearly identifies the valuation methodology, assumptions, market evidence and conclusions reached.
Our services may include:
- Independent expert valuation reports;
- Review of opposing valuation evidence;
- Asset valuation for litigation and dispute resolution;
- Retrospective asset valuations;
- Joint expert conferences;
- Mediation and settlement conferences; and
- Expert witness evidence in court and tribunal proceedings.
Property, Plant & Machinery Expertise
Property, Plant and Equipment (PP&E) generally comprises tangible assets held for use in the production or supply of goods or services, for rental to others or for administrative purposes, and which are expected to be used for more than one accounting period.
Leeson Valuers combines property valuation expertise with plant and machinery valuation capability, providing a coordinated valuation service where a matter involves both real property and associated tangible assets.
Our valuation professionals have the qualifications, experience and industry knowledge necessary to assess both specialised and non-specialised assets across a range of industries.
Independent & Supportable Valuation Advice
Leeson Valuers' commitment is to provide independent, accurate and supportable valuation advice.
We take the time to understand our client's business operations, the nature and function of the assets and the intended purpose of the valuation before determining the appropriate basis of value and methodology.
Whether required for financial reporting, accounting compliance, insurance, taxation, business purposes or litigation, our valuations are prepared with clear methodology, appropriate market evidence and conclusions that can be independently supported.
Leeson Valuers can provide comprehensive plant, machinery and asset valuation services for accounting, financial reporting, insurance, commercial and expert witness purposes.
