12/23/2015· Appraisal & Valuation
Appraisal Review & Financial Risk
By: Jack Young
A previous post introduced the five qualities of a credible appraisal, and in a perfect world, the equipment appraisal report you're basing financial decisions on would always adequately address those USPAP-specified qualities.
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.
10/30/2015· Appraisal & Valuation
Property Insurance Appraisals in Florida - Senate Bill 336
By: John Minor
It appears we may just finally have some more Wyatt Earp in place of Billy the Kid in the appraisal industry. Gentlemen and Ladies, check your guns at the city limits of Dodge!
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.
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.
by Scott Cohen
by Jason McDonald, PhD
by Jeffrey Fox, PhD
