Plant & Equipment Valuation Standards

For any service, it is always best to hire a professional that is regulated by a third party and is compliant with all industry valuation standards. The last thing you want is a sub-par product or service. To ensure we are always up to date with the standards of our profession, our valuers continue to train and develop their skills. Our goal is to always provide our clients with top-tier plant and equipment valuation services.

To provide the best quality valuations to our clients, our Plant and Equipment Valuation WA team abides by the standards of both international and domestic organisations.

There are many organisations that maintain and regulate valuation standards in Australia and across the globe. We follow all the relevant standards a valuation report requires to that it is suitable for its intended purpose and its recipient. Some of the standards we follow have been set by the Australian Accounting Standards Board, the International Valuation Standards Council, the Royal Institution of Chartered Surveyors, and the Australian Property Institute. Below is a list of a few of the standards we may follow with your plant and equipment valuation.

Australian Accounting Standards

The Australian Accounting Standards Board is an Australian Government Agency that is responsible for developing the Australian Accounting Standards Board (AASB). These standards have been formulated with the goal of contributing to the development of accounting and external reporting standards that are fit for worldwide use. Our valuations may abide by the following when required:

AASB 116 – Property, Plant and Equipment
AASB 13 – Fair Value Measurement
AASB 136 – Impairment of Assets
AASB 140 – Investment Property
AASB 3 – Business Combinations
AAS 4 - Depreciation
AASB 117 – Leases

As the AASB has created its standards with the intention of them being suitable for international use, they are heavily based on the International Financial Reporting Standards (IFRS). Below are a few examples of their standards:

IFRS 6 – Exploration for and Evaluation of Mineral Resources
IAS 16 – Property, Plant and Equipment
IAS 41 – Agriculture

International Valuation Standards

The International Valuations Standards Council (IVSC) endeavour to build trust between the public and valuing professionals. To do this and to maintain consistency in valuations all over the world the IVSC has created the International Valuation Standards (IVS). Every valuation report is compliant with their standards which include:

IVS 105 – Valuation Approaches and Methods
IVS 102 – Investigations and Compliance
IVS 101 – Scope of Work
IVS 104 – Bases of Value
IVS 103 – Reporting

The IVS does include standards that are more relevant to asset valuations, and these may include:

IVS 200 – Business and Business Interests
IVS 400 – Real Property Interests
IVS 410 – Development Property
IVS 300 – Plant and Equipment
IVS 500 – Financial Instruments
IVS 210 – Intangible Assets

Royal Institution of Chartered Surveyors

While based in the UK, the Royal Institution of Chartered Surveyors (RICS) is internationally respected for setting global standards amongst professionals in several sectors which include, building surveying, construction, dispute resolution, land, real estate, and valuation. They not only have worldwide guidelines, but they also have set guidelines specifically for Australian professionals, which include:

Aus VPGA 1 – ANZVPS (Australia and New Zealand Valuation and Property Standards)
Aus VPGA 4 – Exceptions to Compliance Requirements
Aus VPGA 2 – Australian State and Territory Licensing
Aus VPGA 7 – Australian Accounting Standards
Aus VPGA 3 – Privacy Legislation in Australia
Aus VPGA 5 – Compulsory Acquisition
Aus VPGA 6 – Native Title

Whenever a valuation report requires, our valuers will comply with the following:

VPGA 5 – Valuation of Plant and Equipment
VPGA 8 – Valuation of Real Property Interests
VPGA 1 – Valuation for Inclusion in Financial Statements
VPGA 3 – Valuation of Businesses and Business Interests
RICS Guidance Note, Global – Measured Surveys of Land, Buildings and Utilities 3^rd Edition
RICS Guidance Note, Global – Land Measurement for Planning and Development Purposes 1^st Edition
RICS Professional Guidance, Global – Valuation of Mineral-bearing Land and Waste Management Sites 2^nd Edition

Australian Property Institute

The most well-known organisation for property professionals is the Australian Property Institute (API). They set and maintain the highest standards for such professionals throughout the country. As our valuers are members of the API and have their accreditation, we abide by their set standards and guidelines. Some examples of such may include:

ANZVGP 302 – Valuations of Real Property, Plant & Equipment for Use in Australian Financial Reports
ANZVGP 102 – Market Value of Property, Plant & Equipment in a Business
ANZVGP 113 – Valuations for Compensation and Compulsory Acquisition
ANZVGP 112 – Valuations for Mortgage and Loan Security Purposes
ANZVGP 109 – Valuation of Rural and Agribusiness Properties
ANZVGP 111 – Valuation Procedures – Real Property Paper
AVGP 301 – Assessing Rent and Rent Determinations
ANZVGP 107 – Valuation of Accommodation Hotels
ANZVGP 104 – Valuations for Insurance Purposes

More than standard Plant and Equipment Valuers

Our valuers use their expertise and their two decades of experience to determine the appropriate standards to follow. Not all valuations are the same, every valuation report is completely customised to your needs while still complying with the relevant standards. Professional, world-class quality valuations are guaranteed for every client.

If you would like to know more about the valuation standards we comply with, or if you would like to enquire about our valuers, feel free to contact our team. You can reach the Plant and Equipment Valuation WA office by either filling out our contact form or by calling (08) 6245 2131.