Present Value LLC » certified machinery and equipment appraisal http://www.presentvaluellc.com Just another WordPress site Wed, 01 Feb 2012 22:28:18 +0000 en hourly 1 http://wordpress.org/?v=3.1.3 IFRS Loopholes http://www.presentvaluellc.com/valuationexperts/2011/12/ifrs-loopholes/ http://www.presentvaluellc.com/valuationexperts/2011/12/ifrs-loopholes/#comments Thu, 15 Dec 2011 19:14:49 +0000 admin http://www.presentvaluellc.com/?p=1066 An article today in the Guardian, a UK-based publication, discussed a think tank report that came out yesterday written by the Adam Smith Institute. The report stated that there are loopholes in the International Financial Reporting Standards (IFRS) that allow banks to falsely inflate their profits and increase employee bonuses. Specifically, there are rules under IFRS that allow banks to call their expectations of future income current profits. This rule encourages banks to make risky investments with the potential for a high pay-off.

Another issue, according to this article, is the way that assets are valued. Banks are allowed to value their assets at market value; however, if assets had to be sold quickly in a forced sale to keep the company afloat, the bank likely wouldn’t get market value for those assets. This rule also helps to falsely inflate a company’s worth.                                                                     

Given this report, it’s a very good thing that the SEC is carefully looking at IFRS and examining these loopholes before adopting the standards in the United States.    

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading:

AICPA Survey Shows that U.S. Accountants Have Some Knowledge of IFRS

Debate Continues About Whether or Not the U.S. Should Adopt IFRS

SEC Releases Staff Paper on a Possible Incorporation of IFRS into U.S. GAAP

]]> http://www.presentvaluellc.com/valuationexperts/2011/12/ifrs-loopholes/feed/ 0 17 Reasons Why You or Your Clients May Need a Certified Machinery and Equipment Appraisal http://www.presentvaluellc.com/valuationexperts/2011/11/17-reasons-why-you-or-your-clients-may-need-a-certified-machinery-and-equipment-appraisal/ http://www.presentvaluellc.com/valuationexperts/2011/11/17-reasons-why-you-or-your-clients-may-need-a-certified-machinery-and-equipment-appraisal/#comments Thu, 17 Nov 2011 23:17:32 +0000 admin http://www.presentvaluellc.com/?p=1037 You have probably needed a machinery and equipment appraisal more than once but didn’t know it. Here are 17 instances in which you should probably get a Certified Machinery and Equipment Appraisal to help reduce your risk of liability.

  • Financing/SBA Loans – Establishes collateral value. The lender will need to have a Certified Machinery and Equipment Appraisal.
  • 1031 Exchanges – One of the best-kept secrets of the IRS. Assets require a valuation for a like-kind exchange.
  • ESOPS – Initial appraisals must start out with accurate values of tangible assets such as machinery/equipment. Book value is usually not accurate.
  • Valuations – Book value is probably not accurate and usually different from Fair Market Value. If the machinery/equipment is not valued properly, the entire business valuation is skewed. Lots of risk and liability!
  • Gifting – Requires an appraisal of the items becoming a gift.
  • Estate Planning – Trusts and wills require a value of the items.
  • Liquidations – How do you effectively and profitably liquidate the assets?
  • Sarbanes-Oxley – Tangible assets must be valued and substantiated.
  • Buy/Sell Agreements – Partners need to know at the outset how machinery and equipment values will be determined.
  • Converting From C to S Corp – A CPA typically requires an appraisal of the assets.
  • Cost Segregation – Equipment values need to be substantiated.
  • Divorces – The division of property will require an accurate, substantiated value by the court.
  • Property Taxes – An excellent tool to prepare for a governmental authority to reduce and substantiate equipment values or substantiate that the equipment is no longer owned by your client.
  • Partnership Dissolution – The partners are splitting the sheets and a total equipment value will be required.
  • IRS – The Pension Protection Act of 2006 requires a substantiated and certified appraisal of the equipment.
  • Mergers & Acquisitions – Buyers and sellers will need a accurate value of the machinery and equipment being purchased or sold.
  • Insurable Value – Insurance agencies and business owners need an accurate value of the machinery and equipment being insured.
  • GAAP and IFRS Reporting Purposes – Generally Accepted Accounting Principles and International Financial Reporting Standards.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Appraisals Are Important and an Arizona Controversy Proves It

Exiting Your Business? Get an Appraisal

The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal

]]> http://www.presentvaluellc.com/valuationexperts/2011/11/17-reasons-why-you-or-your-clients-may-need-a-certified-machinery-and-equipment-appraisal/feed/ 0 The Appraisal Foundation Releases Video Previewing the Changes to the 2012-2013 Uniform Standards of Professional Appraisal Practice (USPAP) http://www.presentvaluellc.com/valuationexperts/2011/08/the-appraisal-foundation-releases-video-previewing-the-changes-to-the-2012-2013-uniform-standards-of-professional-appraisal-practice-uspap/ http://www.presentvaluellc.com/valuationexperts/2011/08/the-appraisal-foundation-releases-video-previewing-the-changes-to-the-2012-2013-uniform-standards-of-professional-appraisal-practice-uspap/#comments Wed, 17 Aug 2011 16:45:43 +0000 admin http://www.presentvaluellc.com/?p=938 Last week, The Appraisal Foundation released a free video, A Preview of Changes to the 2012-2013 Uniform Standards of Professional Appraisal Practice (USPAP). The video is a 23-minute interview with the 2011 Chair and Vice Chair of The Appraisal Foundation’s Appraisal Standards Board (ASB), J. Carl Schultz, Jr., and Barry Shea, respectively. The video is accompanied by a PowerPoint presentation.

The USPAP changes discussed in the video include:

  • Revisions to definitions of “client,” “extraordinary assumptions,” and “hypothetical condition,” as well as a new definition of “exposure time”
  • Creation of a new recordkeeping rule and related edits to the conduct section of the ethics rule
  • Revisions to advisory opinion 21, USPAP compliance
  • Revisions to standards 7 & 8: personal property appraisal, development & reporting

The Appraisal Foundation also has other new resources in its eLibrary, including a mock administrative hearing and an audio webinar on fair value measures.

The Appraisal Foundation announced that it plans to expand its eLibrary later this year with a videotaped session on green buildings and their valuation, coming in mid-fall 2011.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

The Appraisal Foundation Releases Fourth Exposure Draft of proposed changes for the 2012-2013 Edition of USPAP

The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal

Three Things to Think About When Engaging a Machinery and Equipment Appraiser

]]> http://www.presentvaluellc.com/valuationexperts/2011/08/the-appraisal-foundation-releases-video-previewing-the-changes-to-the-2012-2013-uniform-standards-of-professional-appraisal-practice-uspap/feed/ 0 Getting Ready for a Machinery and Equipment Appraisal http://www.presentvaluellc.com/valuationexperts/2011/05/getting-ready-for-a-machinery-and-equipment-appraisal/ http://www.presentvaluellc.com/valuationexperts/2011/05/getting-ready-for-a-machinery-and-equipment-appraisal/#comments Wed, 25 May 2011 02:08:58 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=835 If you are planning on getting an appraisal for your assets, whether it’s because you are selling individual pieces or your business, or need to know the insurable value, there are a few steps you should take to make sure that the process goes smoothly.

Get Organized – Make a list of all the equipment that needs to appraised. It’s also helpful to have all the serial numbers and other pertinent information for your machinery or equipment. Pull together any receipts, including records for repairs or maintenance, and owners’ manuals.

Clean and repair – Make sure that all of your equipment is clean and have any necessary repairs taken care of. Especially if you are looking to sell your equipment, you want to make sure that you can get the highest value possible.

Do Your Research – Make sure that you are working with a reputable, certified machinery and equipment appraiser (CMEA). Know what you can expect to see in a qualified equipment appraisal prepared by a certified machinery and equipment appraiser. A CMEA’s comprehensive and detailed appraisal report normally includes photographs, model numbers, serial numbers, and other descriptive information. Values are based on extensive research, personal inspection, and contact with manufacturers and suppliers to determine what machinery and equipment is really worth. A CMEA’s machinery and equipment appraisals are performed to standards set by the requirements of the USPAP.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Who Needs a Certified Machinery and Equipment Appraisal? Part 1

Three Things to Think About When Engaging a Machinery and Equipment Appraiser

The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal

 

 

]]> http://www.presentvaluellc.com/valuationexperts/2011/05/getting-ready-for-a-machinery-and-equipment-appraisal/feed/ 0 Present Value LLC’s Move into the International Appraisal Business and Why it Will Benefit Our Clients http://www.presentvaluellc.com/valuationexperts/2011/04/present-value-llc%e2%80%99s-move-into-the-international-appraisal-business-and-why-it-will-benefit-our-clients/ http://www.presentvaluellc.com/valuationexperts/2011/04/present-value-llc%e2%80%99s-move-into-the-international-appraisal-business-and-why-it-will-benefit-our-clients/#comments Thu, 21 Apr 2011 23:53:41 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=801 You may or may not have noticed a few months back that we changed the description of Present Value LLC from “a nationwide appraisal firm” to “an international appraisal and advisory firm.” In addition to continuing to serve clients across the U.S., we have been working with businesses all over the world, including Canada, Europe, Africa, the Caribbean, and South America, which we will provide some details about in upcoming posts. Our assignments have varied, including providing straight inventory appraisals and machinery and equipment appraisals, and working with lenders and mergers and acquisitions (M&A) firms.

Of course as a company, we are extremely excited to report our growing international presence, but we are even more excited to talk about how this can benefit all our customers, namely because of our knowledge and use of International Financial Reporting Standards (IFRS). The IFRS are international accounting standards stating how particular types of transactions and other events should be reported in financial statements, which will, at least in part, be required for U.S. companies to adopt within the next few years.

As it stands now, the SEC plans to vote on whether or not to adopt IFRS in June 2011. It’s more than likely that some part of IFRS will merge with or supersede the Generally Accepted Accounting Principles (GAAP), principles used in the U.S. regarding how corporations prepare their income, expenses, assets, and liabilities on their financial statements.

IFRS requires that a company’s balance sheet recognize all allowable assets and liabilities under IFRS reporting standards, re-classify items that were previously classified under GAAP, and apply IFRS standards when measuring the value of all assets, which requires a certified appraisal.

Because Present Value LLC has performed machinery and equipment appraisals worldwide, we are intimately familiar with IFRS accounting principles used in other countries. And we aim to be at the forefront of the appraisal industry to better serve our clients and partners as they navigate these changes when they occur.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

GAAP and IFRS

SEC: Companies Will Need Time to Adopt International Financial Reporting Standards (IFRS)

More International Financial Reporting Standards (IFRS) Information Is Available

]]> http://www.presentvaluellc.com/valuationexperts/2011/04/present-value-llc%e2%80%99s-move-into-the-international-appraisal-business-and-why-it-will-benefit-our-clients/feed/ 0 The Key to Small Business Lending is Collateral http://www.presentvaluellc.com/valuationexperts/2011/02/the-key-to-small-business-lending-is-collateral/ http://www.presentvaluellc.com/valuationexperts/2011/02/the-key-to-small-business-lending-is-collateral/#comments Tue, 08 Feb 2011 22:12:26 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=721 If you read two of the article titles in small business section of The Wall Street Journal (WSJ) this week, you might be a little confused about what’s really going on in terms of small business lending – “Banks Reach Out to Small Firms” and “Is Lending to Small Business Really Up?” What?

For the most part, things look like they are starting to turn in the world of small business lending. Bank of America reported that even though overall lending was down in 2010 from 2009, their lending to small businesses increased by $2 billion. And, there are many other loan-granting institutions that say their lending to small businesses is on the upswing.

The first WSJ article noted above even indicates that many banks are going out of their way to make loans to small businesses. “Bank of America Corp. has promised to add 1,000 small-business bankers during the next 18 months. This week, U.S. Bancorp began training employees at nearly all of its 773 branches in supermarkets on how to make small-business loans.”

However, there are a couple of things to keep in mind. For many of these banks, including Bank of America, their definition of a small business is one that is less than $20 million. And, even though many banks say they are looking to increase small business lending, they are looking to work with “highly creditworthy” businesses and companies that have a lot of collateral.

Banks are less likely to lend money without some security, which can be provided to some extent by tangible assets. They are conducting more careful due diligence, which includes their own certified appraisals of collateral to ensure that they will recoup their losses should a loan default. Having a defensible, impartial appraisal of your collateral in hand can help increase the chances of getting much-needed money for a small business.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Collateral Proves Valuable for Businesses Seeking Loans

Small Business Jobs Act of 2010 Could Be Boon for Small Businesses in 2011

Who Needs a Certified Machinery and Equipment Appraisal? Part 2

]]> http://www.presentvaluellc.com/valuationexperts/2011/02/the-key-to-small-business-lending-is-collateral/feed/ 0 Top 5 Machinery and Equipment Appraisal Posts from Present Value in 2010 http://www.presentvaluellc.com/valuationexperts/2011/01/top-5-machinery-and-equipment-appraisal-posts-from-present-value-in-2010/ http://www.presentvaluellc.com/valuationexperts/2011/01/top-5-machinery-and-equipment-appraisal-posts-from-present-value-in-2010/#comments Tue, 18 Jan 2011 23:38:34 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=705 Three Things to Think About When Engaging a Machinery and Equipment Appraiser

An error in a machinery and equipment appraisal can be costly. You should have confidence that the appraisal values are accurate and are backed by evidence to support the fair market value, fair value, orderly liquidation value, or forced liquidation value. These four factors can help ensure that your machinery and equipment appraisal report will hold up under scrutiny.

The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal

As part of a typical machinery and equipment appraisal, the appraiser will outline the scope of work involved in an assignment. The USPAP (Uniform Standards of Professional Appraisal Practice) has put forth guidelines that machinery and equipment appraisers should include in the scope of work. The minimum standards for scope of work include the expectations of the client and other users and the actions of other appraisers who carry out similar assignments.

5 Cs of Lending (How Appraisal Fits in Even Though It Doesn’t Start with C)

Although this title may sound a little strange since appraisal doesn’t start with the letter “c,” most would-be borrowers probably don’t realize the role an appraisal can play in the eyes of lenders.

To Sell or Not to Sell?

In previous posts, we have discussed that if a business owner is looking to sell equipment or machinery, he/she needs to know three separate types of value that their assets could bring in the market – orderly liquidation value, forced liquidation value, and fair market value. The differences among these types of machinery and equipment asset valuations are dependent upon the situation of the business and the time frame in which the assets need to be liquidated. Recently, however, we have seen that in certain markets, like California, there may be almost no difference between orderly liquidation value and fair market value due to sluggish market conditions.

Preparing for Asset Liquidation

If you are a small business owner who has made the decision to liquidate your assets, there are a number of things to think about as your prepare to do so. First you will need to attend to a number of legal matters. You should meet with your attorney and accountant to ensure that you have all the paperwork in order to legally shut down your business and are prepared to deal with the tax issues related to liquidation. It is best to document everything to save yourself trouble down the road.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

]]> http://www.presentvaluellc.com/valuationexperts/2011/01/top-5-machinery-and-equipment-appraisal-posts-from-present-value-in-2010/feed/ 0 Top 5 Business Valuation Posts from Present Value in 2010 http://www.presentvaluellc.com/valuationexperts/2011/01/top-5-business-valuation-posts-from-present-value-in-2010/ http://www.presentvaluellc.com/valuationexperts/2011/01/top-5-business-valuation-posts-from-present-value-in-2010/#comments Thu, 06 Jan 2011 23:19:25 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=697 Here are some of Present Value’s blog post gems on business valuations and appraisal from 2010 that we believe will be helpful to business owners as they look forward in 2011.

What’s Your Business Really Worth?

A recent article on Inc.com, “How to Find Out What Your Business Is Really Worth,” provides advice from a professional who has owned multiple businesses to small business owners, who might be wondering how much their businesses are worth. He discusses his own experiences as a business owner and wondering what his business was worth; essentially, he was guessing at what his business was worth, only to realize that he was way off.

Some Tips if You’re Thinking About Selling a Small Business

The first step you have to take is getting your financial house in order and getting a business valuation, and this post outlines some of the documents that you’ll need to prepare for a valuation of your company.

Strive to Be Unique and Improve Your Business’s Value

There was an interesting article in the Fort Worth Business Press today called “Strive to be unique; it’s where the real value is.” The article discusses business owners who, after having a business valuation performed, want to know how to increase the value of their business. The predictable answer is to work toward increasing bottom-line profits, but there’s another, more effective way of improving your business’s worth: Differentiate yourself.

Financial Advisors Urging Business Owners to Know the Value of Their Businesses

Because of the economic downturn, many business owners are reluctant to think about the value of their businesses. Fearful that their businesses have lost value, it’s the last thing they want to hear about. An article in Financial Advisor suggests that many business advisors are urging their clients who own businesses to have their businesses valued in order to gauge their business health and for planning purposes, including adjusting estate and succession plans.

Small Business Owners and Planning for Retirement

In today’s New York Times online blog, You’re the Boss, there is a thought-provoking post “Are You Sure You Don’t Want to Retire?” that discusses the plight of older small business owners who are being forced to consider whether or not retirement will be in their future. The author, Barbara Taylor, discusses a recent Gallup poll that reports that 47% of small-business owners may never retire.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

]]> http://www.presentvaluellc.com/valuationexperts/2011/01/top-5-business-valuation-posts-from-present-value-in-2010/feed/ 0 Small Business Jobs Act of 2010 Could Be Boon for Small Businesses in 2011 http://www.presentvaluellc.com/valuationexperts/2010/12/small-business-jobs-act-of-2010-could-be-boon-for-small-businesses-in-2011/ http://www.presentvaluellc.com/valuationexperts/2010/12/small-business-jobs-act-of-2010-could-be-boon-for-small-businesses-in-2011/#comments Wed, 29 Dec 2010 00:11:38 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=682 A recent article from Fox Business, “Expect More SBA Loans in 2011,” discusses how the Small Business Jobs Act of 2010 (H.R. 5297) could potentially benefit small businesses in 2011.

In addition to other provisions, the most welcome news for small business owners is that Small Business Administration (SBA) lending is supposed to increase this year. The article reports that some experts predict that that the volume of loans will double in 2011.

“According to the SBA, the new law provides approximately $30 billion to small banks (those with less than $10 billion in assets) for lending to small businesses, offers approximately $12 billion in tax breaks to small businesses and expands the loan limitations of the SBA.”

If these figures are correct, it benefits small businesses to have a defensible, impartial asset appraisal conducted by a Certified Machinery and Equipment Appraiser prior to seeking a loan in order to help increase the chances of getting approved. Additionally, if there are some areas where a business may be weak in the eyes of lenders, a business owner can use an appraisal to make changes and improve the chances of getting a loan.

To read more about the Small Business Act of 2010, visit the SBA website.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading:
SBA Changes to go into Effect on October 1, 2010

Who Needs a Certified Machinery and Equipment Appraisal? Part 1

Who Needs a Certified Machinery and Equipment Appraisal? Part 2

]]> http://www.presentvaluellc.com/valuationexperts/2010/12/small-business-jobs-act-of-2010-could-be-boon-for-small-businesses-in-2011/feed/ 0 The Appraisal Foundation Releases Fourth Exposure Draft of proposed changes for the 2012-2013 Edition of USPAP http://www.presentvaluellc.com/valuationexperts/2010/12/the-appraisal-foundation-releases-fourth-exposure-draft-of-proposed-changes-for-the-2012-2013-edition-of-uspap/ http://www.presentvaluellc.com/valuationexperts/2010/12/the-appraisal-foundation-releases-fourth-exposure-draft-of-proposed-changes-for-the-2012-2013-edition-of-uspap/#comments Fri, 17 Dec 2010 02:24:49 +0000 admin http://www.presentvaluellc.com/valuationexperts/?p=671 On December 10, 2010, The Appraisal Foundation’s Appraisal Standards Board (ASB) released the fourth exposure draft of proposed changes for the 2012-2013 edition of the Uniform Standards of Professional Appraisal Practice (USPAP), and requests public comment.

The goal of USPAP is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. With this goal in mind, the Appraisal Standards Board (ASB) regularly solicits and receives comments and suggestions for improving USPAP. Proposed changes are intended to improve USPAP understanding and enforcement, and thereby achieve the goal of promoting and maintaining public trust in appraisal practice.

The proposed changes include:

  • Revisions to DEFINITIONS of “Client,” “Extraordinary Assumption,” and “Hypothetical Condition”
  • Required Labeling of Hypothetical Conditions
  • Revisions Relating to Development and Disclosure of Exposure Time Opinion
  • Revisions to Standards Rules 2-3, 3-6, 6-9, 8-3 and 10-3
  • Retirement of STANDARDS 4 and 5
  • RECORD KEEPING RULE and Related Edits to the Conduct Section of the ETHICS RULE
  • Revisions to Advisory Opinion 21, USPAP Compliance
  • Revisions to STANDARD 7: PERSONAL PROPERTY APPRAISAL, DEVELOPMENT

Click here to read the full exposure draft. The ASB is encouraging comments in writing before the January 14, 2011 deadline. There will also be an ASB public meeting on January 21, 2011, in Scottsdale, AZ to discuss the proposed changes further.

Present Value LLC is a worldwide international appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!

By: Present Value

Additional Reading

Certified Machinery and Equipment Appraisers: Present Value

New USPAP Changes Effective January 1, 2010

The Appraisal Foundation Announces 2010-2011 Edition of USPAP

]]> http://www.presentvaluellc.com/valuationexperts/2010/12/the-appraisal-foundation-releases-fourth-exposure-draft-of-proposed-changes-for-the-2012-2013-edition-of-uspap/feed/ 0