A tangible asset has physical and material form such as plant and equipment, inventory etc. Valuation of tangible assets is a complex process and requires professional expertise to value the same. Valuations is computed using multiple approaches and each method differs as per the specific purpose like for tax reporting, financial reporting, impending sale, replacement budgeting etc.
Commonly used methods for tangible assets valuation:
- Replacement Cost: Replacement cost states the cost which is incurred to acquire the same asset with same utility.
- Appraisal Method: Appraiser determines the fair market value ofthe assets by considering current condition of the
asset including wear and tear, expected life and degree of obsolescence.
- Liquidation Value: Assessor determines the fair value of an asset when the company gets liquidated.
At Veristrat, we have dedicated team who provides strategic solutions to clients by valuing such complex tangible valuations using multiple approaches.