The term “valuation” means an independent opinion on value, which is based on a detailed analysis of the object. Meanwhile, the procedure for assessing the property of the organization is also a regulated by the law process of determining and justifying the price of an object for various purposes in monetary terms. That is, in some cases, the assessment of the organization’s property is also caused by legislative objectives – for example, when the enterprise is liquidated. There is a need to determine the market value of the property and economic goals, expediency – after all, often to make certain decisions it is necessary to know the value not only of the market price of the whole business as a whole, but also of individual elements of the property Why do you need to assess the organization’s assets?
- Increase the effectiveness of current management practices of the organization;
- Determination of the price of securities in the event of the purchase and sale of shares of the organization on the stock market. A sound investment decision is taken only in those cases when there is a clear idea of the price of the enterprise’s ownership, or its share attributable to a certain shareholding. Important in the procedure is the evaluation of possible future income from business;
- Determination of the value of the organization in the case of a purchase or a whole or only a part;
- Enterprise Restructuring – Legislation requires an independent appraisal of the organization’s assets upon liquidation, merger or acquisition, or separation. Here it is important to determine the price of purchase or repurchase of shares, conversions, the amount of premium that is paid to the shareholders of the company being absorbed;
- Develop a plan for the development of the organization. In the process of strategic planning of the organization, it is very important to correctly assess the future profitability of the organization;
- Determination of the creditworthiness of the organization and the value of collateral in lending. In such cases, the valuation of the organization’s assets is necessary, since the value of the assets in the financial statements may differ materially from the market value;
- Taxation. When determining the taxable base, it is necessary to carry out an objective assessment of the company;
- Making informed management decisions. Inflation can significantly distort the financial statements of the organization, so periodically evaluating the property by an independent appraiser makes it possible to increase the realism of the output of reports, which will serve as a basis for making important financial decisions.
What does the organization’s property valuation include?
Evaluation of real estate. Determining the cost of buildings, buildings, and other structures that belong to the organization – and all that is somehow connected with the earth (objects whose displacement without sufficient damage is impossible).
Evaluation of the land. To determine the market value of a land plot or the market value of lease rights, land valuation is the most relevant way to solve the problem. The land market valuation can depend on such factors as price level, competition in the land market, location, and market potential of the area, and also on the expected income from use. In addition, there are also specific factors related to the purpose of the assessed land (for example, fertile soil, etc.).
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Property and voluntary:
Evaluation of vehicles. Here we mean the valuation of cars, trucks, containers and other transport equipment. Also distinguish automobile vehicles, rail, air, sea, river and pipelines. Evaluation of vehicles can be carried out, either individually or as part of the property complex of the enterprise. The most common type of valuation is the evaluation of the car – it is carried out by calculating and correcting the price depending on the main pricing factors: year of production, initial cost, mileage, technical condition.
Evaluation of equipment. The cost of the whole range of movable property objects – technical complexes, devices and industrial devices, machine tools and technological installations, production lines and office equipment, furniture, household items and other objects that can be attributed to movable property is estimated. Evaluation of equipment is often the only option to determine the real value of the assets of the enterprise.
An obligatory independent assessment of the organization’s property and voluntary
An independent examination of the organization’s property may be voluntary or independent.
An obligatory assessment of the organization’s assets is carried out when objects partially or wholly owned by the state are involved in the transaction for the purpose of their privatization, lease, pledge or trust management. In addition, an independent assessment is also mandatory in cases where there is a dispute about the price of objects belonging to the Russian Federation when buying or seizing property from owners for municipal or state needs. The legislator points out the importance of conducting an independent examination in the event of a dispute over the calculation of the tax base, mortgage lending to individuals and legal entities, as well as when drawing up a marriage contract or when divorcing property.
Voluntary independent expertise is carried out with insurance, restructuring, revaluation of the taxable base of the company and in many other cases.
The company “Active Business Consulting” offers an assessment of the organization’s assets in a short time, but with the accuracy and scrupulousness that information deserves – the main foundation for making important decisions.