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Valuation of assets. Why is this important?

Asset Valuation Report

The report is an official document and contains information:


  • About the company - the customer;

  • on the nature of the methodology used in assessing property;

  • about the studied objects;

  • on the results of the assessment;

  • on the analysis of financial statements.Asset Valuation: Concept

  • The assessment procedure is carried out on the basis of the financial statements submitted by the company and expert legal measures using modern techniques.


The traditional way of valuing assets is the method based on the purchase price of the object or production cost, reduced by the amount of depreciation. However, when conducting evaluative actions, a specialist needs to be free to navigate in the current market situation, to take into account many factors that cardinally affect the price of an object. The final value of the objects is formed on the analysis of the real market situation. Particular difficulty in the assessment is caused by intangible assets, for example, trademarks, software products or business reputation. A feature of the analysis of property is the valuation of assets and liabilities, which is understood as an analysis of the company's existing debt obligations. In this case, the size of the net assets of the company is calculated, i.e., the value equivalent of the property minus the amount of liabilities.


Features of the procedure

Depending on the goal set by the company before the appraiser, the valuation of assets can be carried out by the company as a whole or by property groups:


  • real estate, which includes buildings, structures, residential and non-residential funds, land, unfinished objects;

  • transport, machinery and equipment;

  • MPZ;

  • securities, shares, bills;

  • NMAs that do not have a material form, but are capable of bringing a considerable income to the owner.

Asset Valuation Report

The report is an official document and contains information:


  • About the company - the customer;

  • on the nature of the methodology used in assessing property;

  • about the studied objects;

  • on the results of the assessment;

  • on the analysis of financial statements. More here - https://www.worldbank.org/


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