Plant and Equipment Case Studies
There are many uses for the services we provide here at Plant and Equipment Valuation WA. We offer a wide range of plant & equipment valuations in Perth and each is tailored for its intended use and the needs of the client. This can only be achieved by a valuer with the proper qualifications, an incredible amount of experience and the right expertise. Below are a few case studies to demonstrate how a plant and equipment valuation may be used.
Asset Valuation for Tax purposes
When it comes to assets, you will need their market value to properly calculate your tax liabilities. The Australian Taxation Office (ATO) does not consider the amount an asset was acquired as its fair market value. This applies to assets belonging to businesses, individuals, and self-managed superannuation funds.
The market value of an asset is the amount that it would be purchased for in an arms’ length sale between two well-informed parties acting without compulsion. This would be a true reflection of the asset’s value and as such, this is what the ATO bases their calculations on. To ensure your taxes are completed correctly, ordering an asset valuation from a qualified asset valuer is the best course of action.
Plant & Equipment Valuation for Settlements
Settlements can be between more than just a married or de facto couple. If there is a broken partnership of any kind, including business partners or even between an investor and business owner, then these cases may lead to a settlement agreement. To ease the process and to ensure that the division of assets and finances is fair for all parties, a plant and equipment valuation could be of good use. This is a valuation of all fixed assets belonging to an entity, including property, vehicles, and machinery.
For settlements, plant and equipment must only be valued by a qualified expert with a good reputation. This reduces the chances of the valuation being challenged and could prevent the settlement from escalating to the Courts.
Machinery Valuation for Insurance
When valuing machinery for insurance purposes, a certified machinery valuer could use a few different methods including the direct comparison approach. The primary method is likely to be the replacement cost method which is a method of valuation that involves examining the machine and completing thorough research. The valuer uses all relevant data that allows them to calculate the full cost of replacing the machinery either through recreation or through the purchase of its equivalent.
When calculating the full cost of replacement, the machinery valuer considers the cost of redesigning, re-construction, materials, energy usage, labour and other costs associated with replacing a machine.
Experts in Every Case for P&E Valuations
The Plant and Equipment Valuation WA team is full of experts, ready to answer any questions and offer guidance through the valuation process. As all our valuers have had over 20 years of experience as Certified Practising Valuers of Plant & Machinery, they have the ability to adapt their reports to any case while complying with industry standards.
To find out more about how a plant and equipment valuation may aid in your situation, contact our team. To speak with an expert, complete our contact form or call the Plant and Equipment Valuation WA office on (08) 6245 2131