There are several methods used to value plant and equipment, including:
- Market Approach – Comparing similar assets sold in the market.
- Cost Approach – Determining the replacement or reproduction cost, then factoring in depreciation.
- Income Approach – Estimating the value based on the asset’s ability to generate income.
A qualified valuer considers factors such as age, condition, technology, and market demand to provide an accurate assessment.
The valuation of machinery and equipment requires careful analysis of usage history, maintenance records, and market conditions to ensure values are fair, defensible, and aligned with Australian Accounting Standards.