Market Value

Our Valuation Reports are prepared under Australian Accounting Standards Board, Accounting Standard AASB 13 and AASB 116 Fair Value Measurement (market value).
The “Fair Value Measurement” (as amended) incorporates IFRS 13 Fair Value Measurement as issued and amended by the International Accounting Standards Board (IASB).

Fair Value Hierarchy

Under the accounting Standard AASB 13 Fair Value Measurement (Market Value) inputs for valuation techniques used to measure fair value are categorised into three levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets of identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs)

Level 1 Inputs are quoted prices (unadjusted) in active markets of identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs of the asset or liability.

Scope of Engagement

We rely on our physical identification of Assets including the descriptions, manufacturer, model, serial number, and quantities prepared by the instructing parties. The Assets are sighted and identified and photographed.

Following our onsite inspection, our experience and research we provide Individual values using the Australian Accounting Standard Board AASB 13 and AASB 116 “Fair Value Measurement” Level 1, Level 2 and 3 being deemed appropriate as per the Standard on a cost approach basis to value the subject tangible assets used for the purpose they were designed in-situ as a going concern or ex-situ upon removal and not as a going concern.

Our onsite inspection forms the basis of our independent Valuation Report Assignments.

Valuation Methodology

We use the Cost Approach where possible to value a company’s asset register when there is little market comparisons of comparable assets trading as a “going concern”. For non-specialized assets, we rely on the market comparison approach where possible.

A resale price that a seller willing but not overanxious, has some time to find the best price, and is not forced into a sale. The values are based on our previous experience, investigations, and research.

The Market Comparison Approach seeks to determine the current value of an asset by comparable transactions involving the sale of similar assets and is generally appropriate for assets where an established market exists, such as real estate, motor vehicles and general plant and equipment. This method is almost typically used to value non-specialized assets.

The Income Approach values both tangible and intangible assets and on occasions the income approach will not be considered when we are not valuing the business and only seeking to value the tangible assets as per the entity’s asset register.

The cost Approach “Depreciated Replacement Cost” (DRC) is the estimated current cost of replacing the asset with a similar asset and considering shipping and installation, less depreciation, wear, and tear (damage naturally and inevitably occurring as result of normal wear or aging), economic obsolescence and commonly applied where there is no readily available market value.

The DRC based market values the tangible assets and assumes the business is ongoing.

Working alongside and getting to know a business is crucial and on a recent assignment during during 2021 we were able to identify a tangible asset not previously recognized and valuing that asset at $1.295 million.

Assumptions and Qualifications

Our Valuation Report’s consider the tangible assets forming part of a business and determined by its best use that is, the best use of the assets is physically possible and legally permissible.

We rely on the assumption the highest and best use in the most advantageous of market.

Our Statements of fact contained within our Valuation Reports are true and accurate.

Our Valuation Reports, assumptions and opinions are our own and are impartial and unbiased.

We have no personal interest in the assets, the parties, or the entities we accept Valuation Report Assignments.

We inspect all the assets the subject of our Valuation Reports.

Any Valuation Report Fees paid to us are not contingent on the outcome.