Asset Valuation Services

To know Fair Market Value of Plant Machine & Equipment

As per the International Valuation Standards,   Market Value is the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where each party had acted knowledgeably, prudently and without compulsion.

Valuation for Impairment Loss

An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. An impaired asset is a company's asset that has a market price less than the value listed on the company's balance sheet.

For Revaluation of Assets

In Revaluation model, the fair value of plant , machinery and equipment is measured and reliably carried , being its fair value at the date of the revaluation deducting any subsequent accumulated depreciation and impairment losses. Revaluations are usually  made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. 

Valuation for Transfer Pricing Audit Purpose

Transfer pricing refers to the methods for pricing transactions within the  enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort taxable income, tax authorities in many countries can adjust intragroup transfer prices that differ from what would have been charged by unrelated enterprises dealing at arm’s length.

Valuation of Capital Goods viz machines and equipments are sought by the Tax Auditors to know the anticipated value of assets for the Transfer Pricing audit purpose.

Valuation for Insurance

Valuation of assets is required for fixing of sum insured under fire and engineering class of business insurance policy . The valuation is generally provided on either of the  two methods: Indemnity basis or Reinstatement value basis as per the conditions of insurance policy.

Valuation for Disposal of Plant and Machines

Asset disposal is the act of selling an asset usually a long term asset that has been depreciated over its useful life like production equipment. When companies dispose their equipments, it gains a salvage value or residual value which can be a gain or a loss per the books.