Personal Properties Appraisal Report

By conducting a Personal Properties Appraisal Report with Setape, you are ensuring that the valuation of your assets will be done correctly and accurately.

What is the personal properties appraisal report for?

Managers are constantly faced with situations that compel them to know the market value of personal properties, whether at the time of purchase, sale, financial guarantee, financial analysis of an investment, adjustment or fulfillment of obligations of their values in accounting, impairment test or even for managerial purposes.

The appraisal of personal properties allows the manager of the company to have the knowledge of the valued of their fixed assets and the costs related to their depreciation. It also could guide the decision making in a case of a asset replacement, giving the cost of a new one.

There are a wide range of purposes to conduct an appraisal of personal properties, (e.g. industrial installations, machinery, equipment, vehicles, furniture) such as:

adjustment of fixed asset values (Deemed Cost),
valuations for disposal,
mergers and acquisitions,
auctions,
financial guarantee,
liens,
insurance

What are the benefits of carrying out the valuation of movable assets?

Analysis of physical depreciation where it will be possible to check if the equipment has already exceeded its useful life, being worn out and producing at a high maintenance cost, and if it should be renovated or replaced.

Identify whether the current equipment has sufficient capacity for its demand or is obsolete to meet the conditions due to technical demands or market requirements.

Compare the asset that is in the company with other market alternatives, which can be technically better for a more advantageous;

Meet the requirement of CPC 01 (R1) which requires the determination of the fair market value to compare it with its book value and therefore perform the Impairment Test.

Analyze the possibility of leasing or renting compared to the cost of own an asset.

Determination of the value for insurance.

It is common in the routine of a company’s administration, to perform the calculation procedures in an automatic way of the fixed assets only using the numbers resulting in accounting.

What are the related services for the appraisal of personal properties that are carried out by SETAPE?

Usually the appraisal of personal properties is made in conjunction with real estate and can be presented, or not, in the same Report. Some of the purposes that are related to are:

Financial guarantee,
Asset reorganization,
Impairment test (CPC01),
Public companies (that provide services for the citizen)Tariff Reviews,
Merger and acquisition,
Sales,
Incorporations

Some of the Personal Properties are:

Machines and equipment,
Industrial Installations,
Furniture,
Computer Equipment,
Vehicles
Boat,
Stock Materials,
Molds and dies,

What is the methodology for personal properties appraisal?

The general methodology used in the valuation of movable assets as part of a company’s Fixed Assets, according to the requested purpose, consists of:

Planning of services and identification of assets to be evaluated.
Physical inventory (where the appraiser will determine the conservation state, inquiry about recent refurbishment, take pictures, establish if necessary the remaining useful life)
Verification of the conservation status of each asset,
Market research with manufacturers, suppliers etc.,
Establishment of the Value of the asset,
Calculate the depreciated value (current value), considering its obsolescence, state of conservation and useful life.
Issuance of the Appraisal Report according to its purpose.

The specific standard for Personal Properties is determined by ABNT – NBR 14653-5 – “Asset valuation – Part 5: Machinery, equipment, installations and industrial goods in general”. The evaluation methods are defined through three basic approaches:

a) Direct comparative method of market data, which consists of comparing the good with similar ones for sale in the market

b) Cost method, which measures how much would be necessary to replace a given asset, using synthetic or analytical quotes considering its depreciation.

c) Income method, which consists of valuing the asset based on its possibility of future income, in which case we would be reflecting the economic valuation.

Technical Standards

Setape’s valuations are always carried out with strict observance of all guidelines set by the ABNT Standards – Brazilian Association of Technical Standards and Ibape Nacional – Brazilian Institute of Engineering Valuations and Expertise.

Why hire Setape?

Complete Advisory

The only company that performs all services of valuation of movable and immovable property, urban and rural, valuation of companies, and has support for asset control (fixed assets).

Proven Experience

With 45 years of activities and more than 80,000 services performed, it is the company with the most experience in evaluating the fixed assets market and in economic evaluations.

Qualified Team

It has its own team with more than a hundred professionals from all specialties.

Satisfied Customers

Quality of services proven by its customers

International Coverage

It belongs to the VRG – Valuation Research Group of international valuation companies with service coverage on all continents

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