Useful Life Assessment Report

By conducting an Useful Life Assessment Report with Setape, you are ensuring that the valuation of your assets will be done correctly and accurately.

What is the useful life assessment report for?

Useful life is the technical and economical lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations

A technical appraisal report for the useful life of an asset can provide the following information:

Establish a technical life data to be applied in the company’s acquisitions
Assess, based on the technical useful life, what is the remaining depreciation rate of an asset

With this kind of information:

a company has subsidies to guide the forecast of investments with maintenance, renovations or replacement of equipment to maintain its best efficiency.
It is possible to analyze the depreciation since the revision of the useful lives of the assets directly influences the accounting for the depreciation calculations. Consequently, their costs can be changed, impacting in their economic value.

This report covers both personal properties and real estate, such as: machinery, equipment, industrial facilities, furniture and fixtures, vehicles, buildings, etc.

Valuation reports with the review of useful lives are used as a subsidy for operations to adjust the values of fixed assets (Deemed Cost), valuations for sale, mergers, acquisitions, mergers, auctions, guarantees, liens, property insurance.

What are the benefits of carrying out the useful life assessment?

Within the benefits of a useful life assessment, we can highlight:

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

– Compare the good that is in the company with other market alternatives, which can be technically better for a more advantageous value to the current production good;

The absence of the exact dimension of the useful lives of an asset prevents management decisions from being made based on reliable information.

What are the services related to this that are performed by SETAPE?

Normally an assessment made by SETAPE of movable property is made in conjunction with real estate and can be presented in the same Report.

Here is a list of the main purposes:

Financial guarantee,
Asset reorganization,
Impairment test (CPC01),
Concessionary Tariff Reviews,

Useful life report can be made for a diverse range of assets such as:

Machines and equipment,
Industrial installations,
Furniture,
Computer equipments,
Air, land, sea,
Operational stock materials,
Molds and dies,
Industry utility facilities
Buildings
Constructions
Houses.

What is the useful life assessment methodology?

The methodology and general steps used to assess the lifespan of a fixed assets are:

Planning of services and identification of assets that will have their useful lives evaluated.
Physical inventory for the verification and classification of categories of type of asset that the assets belong to,
Verification of the conservation status of each asset and estimate of the remaining useful life,
Research for information with manufacturers, suppliers, catalogs, manuals, etc. (for personal properties),
Creation of the Useful Life Table by category of type of goods existing in a company.
Classification for each asset in its useful life category and calculation of its remaining years, considering its obsolescence, state of conservation.
Issuance of the Appraisal Report according to its purpose.

The specific standard for movable goods in this case is ABNT – NBR 14653-5 – “Asset valuation – Part 5: Machinery, equipment, installations and industrial goods in general”, NBR 14653-2 – Real Estate and, IBAPE Norms – Brazilian Institute of Engineering Assessments and Expertise.

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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