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Assets Valuation
There are several reasons why your organization would benefit from conducting an assets valuation. The main reason is the knowledge that you will help your organization run more smoothly and efficiently. The financial department will be happy as this process will help them to accurately document and report their financial assets. You will also have a more defined measurement of your risk exposure and need for insurance coverage. The undertaking of an assets valuation will generate the information that is needed for allocation of resources, performance assessment and internal control. This process will establish the basis for asset realization or maximum return on company assets.
This is not to say that it is an easy task by any means. Deciding on an appropriate method of asset valuation is the first ch allenge. In order to choose an appropriate method of appraisal you must first determine the purpose of the asset valuation and the nature of the assets. Some of the more popular methods include:
- Historical cost method, the amount that was paid to acquire the item
- Current market value method, the amount of cash or equivalent that could be obtained if you sold the asset through liquidation
- The net realizable method the amount that the asset could be expected to be converted to in the course of business
- The discounted future cash flows method which takes into account the present value of future cash flows that can be expected to be brought in minus the amount of cash flow necessary presently to obtain the future inflow
In order for an assets valuation plan to be effective the information must be relevant to the assets and be received in a timely manner, the information must also be reliable; that is free of error and bias and verifiable.
Asset Valuation requires experience and expertise which is why so many companies look to SurplusEQ’s Valuation Services to help them make better more informed business decisions. They have over 60 years of experience in consulting and appraisals in almost one hundred different industries around the world. By bringing this experience and global presence to the table you can be assured that you are getting reliable, accurate and up to date information. Whether you are a small company or a large corporation their assets valuation services may be suited to meet your individual needs.
SurplusEQ has professionals working around the globe and employs people with expertise in a variety of industries. By leveraging this assets valuation expertise you will have the competitive advantage to make the best most informed decisions.
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