Tag Archive for: assets

Theory plus Experience

Theory plus Experience are essential with the valuation of Plant and Machinery

Prime Objective considerations “In-situ Plant and Machinery”

  • Is the machine relevant for the current industry?
  • New improved machines and their replacement cost
  • Remaining functional lifespan
  • Major Capex for the plant to remain functional
  • Quality of ongoing maintenance, records
  • View plant in operational status
  • Physical/Functional and Economical obsolescent
  • Is the plant being overextended with the current production rate
  • Future relevancy for the specific manufacturing

It is essential for the Professional Valuer to spend time with the Plant Manager and require information on the backdown history and the reasons for these defaults. Note that all plant and machinery have a limited economical lifespan, for which a Risk factor is applicable. Any uncertainty with the supply of the Raw materials and demand for the Final product, to be highlighted and included in the Gross Risk allowance. The age-old principle of supply and demand in the open market, tested by a willing buyer, a willing seller is eminent.

Movable and Immovable Assets

This article provides a brief account of some definitions and terminology used in the property industry. The aim is to highlight the distinction between the terms movable and immovable assets (also referred to as property).

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Replacement Cost Valuations and Replacing Assets

It is important to note that insurance valuations or replacement cost valuations is not always a straight-forward process, often you might be over- or under-insured. Read more

How you are insured: New-for-old (mostly)

Most short-term insurance policies are based on replacing your insured property or assets at new-for-old. This means that if an event arises that damages your property or assets, you can submit a claim to your insurer and they will repair the damage or replace the asset with the equivalent new. This is in line with the principle of placing you in the same financial position you were in directly before the event occurred. Read more