What are the Contents of a Plant and Machinery Valuation Report?

“This report, by its very length, defends itself against the risk of being read.” – Winston Churchill

Many people and organizations in need of a plant and machinery valuation of their assets have always been wondering what a full valuation report would look like. This article is going to address this among other issues. Plant and machinery valuation is required by all kinds of organizations for various reasons, mainly insurance, financial statement inclusion, sales and purchase and other purposes.

Valuations of plant and machinery have been guided internationally by the International Valuation Standards (IVS) published by the International Valuation Standards Council (IVSC). However, a number of valuation regulatory bodies both regionally and internationally have come up with their own professional standards guided by the International Valuation Standards (IVS). The bottom line is that valuation reports should comply with certain requirements within a particular jurisdiction where it is used and for whatever purpose. It is common practice that during the exercise, the practising valuer should categorically specify in both the terms of engagement and the report which standards were complied with.

The report should include the following basics:

1. Details about the client or third party to use the report;
2. Description of the plant and machinery to be valued;
3. An outline of the purpose of the valuation;
4. Assumptions & Caveats to be adopted in the valuation;
5. The date(s) of valuation and reporting;
6. Description and explanation of the basis of valuation that has been adopted;
7. Description and explanation on the valuation methodology or approach that has been utilized;
8. Explanation on the valuation conclusion;
9. Statement on the confidentiality and publication;
10. Signatures and designations of the valuers
11. Photographic evidence of the plant and machinery valued.

 Plant and Machinery Valuations Land Sterling specializes in the valuation of plant and machinery of all asset types across the industrial sectors for small, medium and large-scale organizations in the Middle East and North Africa. Land Sterling valuers have an established reputation with expertise and knowledge; give special attention to detail about each and every plant, equipment or production line. Our valuation services are in compliance with international valuation standards and utilizing best practice.

No assignment is too small or big for us.

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