FEATURED ARTICLES BY JACK YOUNG

11/25/2015· Appraisal & Valuation

Appraisal Review: Determining Whether an Appraisal is Accurate

By: Jack Young

Appraisal review raises the bar on appraisal reports by providing professional, expert review of the appraiser's qualifications, how well the report aligns with standards of appraisal practice, and whether or not the appraisal report itself makes logical sense to a trained professional. Failure of an appraisal report to meet any of these three qualifications indicates that the report under review cannot be depended upon.

10/7/2015· Appraisal & Valuation

Reconciling Equipment Appraisal Values

By: Jack Young

Reconciliation is the final process for the equipment appraiser when more than one approach to value is used in an equipment. valuation. That process involves reconciling the values from the separate approaches and resolving, if necessary, any differences in order to arrive at a final opinion of value. The question here is: "Why in the world would an appraiser use more than one approach to value?"

8/31/2015· Appraisal & Valuation

3 Ways to Determine Equipment Value

By: Jack Young

Let's say you're getting an equipment appraisal on your metalworking facility, your food processing plant, or a manufacturing facility, restaurant, or trucking company. When you think about how an equipment appraiser might research the values for your fleet vehicles, your kitchen equipment and dining room furniture, or for your CNC machines, drills, presses, etc., you probably assume the sales comparison approach. And in most cases, you might be right. But don't forget: Uniform Standards of Professional Practice (USPAP) recognizes three distinct valuation methodologies and it's important to consider all three before determining the correct approach for a particular appraisal. These three appraisal methodologies, or approaches to value, are Sales Comparison Approach, Cost Approach, and Income Approach.

7/23/2015· Appraisal & Valuation

Case Study: Appraisers for Acquisition Accounting

By: Jack Young

This case study deals with some of the practical considerations surrounding the accounting for the acquisition of a closely-held integrated dairy products operation and the subsequent disposal of a portion of the acquired assets. Specifically use and oversight of appraisers for determining fair value amounts necessary for acquisition accounting is examined. Additionally, the accounting implications of the subsequent disposal of assets are considered in light of the initial acquisition accounting.

6/19/2015· Appraisal & Valuation

Appraisal Review: Standards & Methodology

By: Jack Young

When clients call our office asking for an equipment appraisal review, I've found it's important to ask them the purpose of the appraisal review. That quickly opens up the discussion about what an equipment appraisal review is and is not. And believe me, not everyone understands the difference between an appraisal (a quantitative analysis) and an appraisal review (a qualitative analysis). Some think they are going to get an opinion of value to compare to the equipment appraisal they've requested a review of or whether I think the equipment values in the report are "right." That, however, isn't what an appraisal review is really about.

5/22/2015· Machinery

Seeds of an Equipment Appraisal Career

By: Jack Young

I spent last week back east visiting my uncle and cousins at the Young family farm, where my uncle, who grew up there, now raises goats, grains and vegetables and boards horses on the property. My grandfather (Pappy) wasn't raised on a farm, but as a young man he built an old style dairy farm - a farm that not only made a living but fed his family as well. The dairy farm wasn't limited to milking cows; this family farm, like so many in that era, raised pigs, chickens, horses and grew corn, oats, rye; had a full vegetable garden as well as pasture land, an orchard and berry patch.

4/30/2015· Machinery

Machinery and Equipment Appraisals: They're All About Levels of Trade - Appraisal Expert Provides Tips for Several Scenarios

By: Jack Young

Every machinery and equipment appraiser is most likely familiar with the phone call - "I've got some equipment that I need to have appraised. How much will it cost?"

3/6/2015· Appraisal & Valuation

Using the Cost Approach for Equipment Appraisals

By: Jack Young

While equipment appraisals frequently rely on the Sales Comparison approach, researching an opinion of value takes an interesting turn when we appraise items for which there is not an active market. When a piece of specialized equipment cannot be compared to an item of similar utility, we can find a value by using the Cost Approach, known in machinery and equipment circles as "Trend and Bend."

1/23/2015· Appraisal & Valuation

Considering Absorption In Equipment Values

By: Jack Young

The concept of absorption is used relatively often in real estate appraisals and the same concept, known as "blockage," is well-documented in the art valuation world, particularly in tax-related appraisals.

12/12/2014· Appraisal & Valuation

Appraising Equipment For Retail Propane Companies

By: Jack Young

Retail propane companies may need their equipment appraised for collateral lending situations, buy-sell agreements, family law, estate tax or several other situations. Whatever the reason, when appraising retail propane equipment, it's important for an equipment appraiser to understand the overall retail propane industry as well as how the basic equipment - trucks and trailers, customer tanks, and large volume storage tanks - fits into the big picture.