Valuation of movable property
Valuation of movable property is an activity on determination of the market value of wide range of equipment and machinery, transport equipment, machinery tools, devices, computers, cars, technological complexes, product lines, power units, office equipment, furniture, welfare items and other objects.
For this or that subject to be added to the movable property, it must meet two basic criteria:
- it should not have strong bond with the earth (material criterion);
- it should not be attributed by the law to real property and transfer of this thing can’t result in damage disproportionate to its purpose (legal criterion).
Thus, the category of movable property includes wide range of objects.
Within valuation of movable property, the valuator accepts or justifies the rejection from use of three approaches: market, income or cost. The choice of approach is determined by the characteristics of the property, as well as situation and objectives set before the valuator.
Frequently, valuation of movable property represents part of valuation of larger property item (business, real estate). In this case, it is important to know whether concerned movable property is functional asset of the company’s business, or it should be considered as an independent object of valuation. In accordance with international practice, movable assets are divided into core and non-core. In some situations, the object nominally belonging to the category of movable property must be evaluated as part of real property (if its connection with real property object is strong and moving or deleting of this movable property will entail significant reduction in the real property value).