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July 15, 2012
by EquipNet News
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U.S. SEC Releases Report Discussing IFRS

On July 13, 2012, the U.S. Securities and Exchange Commission (SEC) released a 127-page report providing a thorough discussion of the issues related to International Financial Reporting Standards (IFRS) in the U.S. The report notes that a full switch to IFRS would strain the resources of U.S. companies and that a stepped transition has more public support. However, as expected, the report did not contain specific recommendations on whether U.S. public companies should be allowed or required to adopt IFRS for financial reporting. SEC spokesman John Nester said that the SEC will make a recommendation on IFRS, but

did not say when. A recent article in CGMA Magazine, “US regulator’s report offers detailed look at IFRS,” provided an overview and some highlights from the report, including:

  • The progress of the development of IFRS
  • Maintenance of IFRS by the IFRS Interpretations Committee (IC) of the International Accounting Standards Board (IASB)
  • The extent of the IASB’s use of national standard setters
  • Application and enforcement
  • Governance of the IFRS Foundation
  • Funding of the IFRS Foundation (the IASB’s parent organization)

According to the report, U.S. companies have expressed concern about a full adoption of IFRS because of the expected high costs of moving to the international standards. As it pertains to appraisal, IFRS requires that public companies’ assets, including machinery and equipment, are recorded according to fair market value, and requires that an independent appraiser be used in the majority of cases to determine a fair market value of the assets. For more information on the differences between IFRS and the current U.S. standards, GAAP, click here. To learn more about IFRS and appraisal and EquipNet’s appraisal services, visit The Asset Accuracy Resource Center or contact us.

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July 9, 2012
by EquipNet News
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EquipNet Procurement Case Studies

EquipNet’s Procurement Solutions helps companies save a lot of money by sourcing high-quality, pre-owned assets. This program helps companies save 25% to 75% on equipment, while avoiding the time, effort, and risk traditionally associated with the used equipment market.

Want to see some examples of how we’ve done it? Read on …

Case 1
A Fortune 500 global pharmaceutical company had an immediate need for two 30-liter bioreactors, and was considering purchasing new equipment for $205,000. The wait time for this equipment would have translated to significant lost lab/production time for the client.

EquipNet’s sales force was able to locate two unused Sartorious 30-Liter Bioreactors that perfectly fit the client’s needs. EquipNet negotiated the purchase of both bioreactors on our client’s behalf for a total of $115,000 without any lead time. In the end, EquipNet Procurement Services saved the client $90,000, as well as the time that would have been spent waiting for their equipment to arrive.

Case 2
A global API manufacturing and R&D company needed to purchase two ultra filtration systems for one of their facilities in Massachusetts. They were quoted prices between $800,000 and $1,000,000 for both systems, and were looking at long lead times. Essentially, they were paying both time and money in order to purchase new.

EquipNet was able to source two unused Millipore ultra filtration systems from another leading pharmaceutical company. Instead of paying the quoted prices, our client was able to purchase both unused Millipore systems for a total of $550,000. EquipNet Procurement Services was able to eliminate lead time, and saved the client more than $250,000.

Case 3
A global pharmaceutical conglomerate’s Belgium site had a dire need for a Bruker NMR in order to continue a pressing project. The client had the option of purchasing a brand-new unit from the manufacturer for a quoted price of €573,000.00 or testing the waters of the used equipment market.

EquipNet’s direct sales force was able to locate a perfectly functional Bruker NMR for their consideration. The unit was exactly what they needed, and they were able to finalize the purchase for a total of €197,000, a fraction of the price quoted directly from the manufacturer.

Are you looking for ways to stretch your organization’s capital budget? Contact EquipNet today to explore how we can help you meet your savings goals.

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July 5, 2012
by EquipNet News
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The Importance of Certified Machinery and Equipment Appraisal in Liquidating a Business

A recent story about a San Francisco-based auto parts company that decided to shut down its operations highlights the importance of conducting a certified machinery and equipment appraisal (CMEA) in such a situation.

The company, which manufactured auto parts for foreign imports, was struggling for some time before the owner decided to shut down and liquidate its assets. They had a tremendous amount of inventory on hand and decided to sell it off to their competitors.

The company researched the resale value of the equipment on, of all places, eBay, and assigned their own values to match. They sold off almost all of the equipment and shut down operations.

The owner of the company wrote a blog post about the experience and was contacted by a CMEA, who was curious about the inventory and the process the company went through. When the former owner gave the CMEA all of the numbers and specifications of the inventory, he was devastated to find out he’d undervalued the equipment by tens of millions of dollars. The buyers certainly got a steal on that deal!

The lesson here, always have a CMEA perform an appraisal of your company’s assets to ensure that you get full value for your machinery and equipment. A Certified Machinery and Equipment Appraisal is based on years of experience and methodical research, and is defensible, irrefutable, and substantiated.

It is essential for business owners to know the value of their equipment, especially if they are looking to sell, so that they can receive the best possible price in the current market. Visit EquipNet’s Facility Closure Resource Center for more information.

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July 3, 2012
by EquipNet News
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There’s a Fungus Among Us: Using Fungi to Break Down Plastics

Plastic waste is a huge environmental problem. Each year, in the United States alone, about 30 million tons of plastic is tossed into landfills where it stays for hundreds, or even thousands, of years. And half of that is in the form of containers and packages, many of which can be recycled, but frequently are not. A lot of that plastic garbage ends up in the ocean. Proof exists in the form of the Great Pacific Garbage Patch, which was formed as an accident of wind and water current, but now ranks as the largest dump in the world.

The good news is that recent research on fungi has shown that certain fungi are able to break down plastic packaging that contains BPA. If you follow us on Twitter, you may have seen our link to an article about the research. According to the article, a research team from India found that if they pre-treat BPA-containing plastic with heat and UV light, there are three types of fungi that can break down the plastic. The fungi use the plastic as a carbon source, which it needs to grow, and leave no traces of BPA behind. The article goes on to describe innovative forms of packaging that have no plastic at all, but are instead made of a dried and molded collection of the non-reproductive part of a fungus.

This is exciting news for the environment and for manufacturers that care about the environment and worry about where their products and packaging end up when the consumer is done with them. EquipNet is an ardent supporter of eco-friendly disposal of e-waste and we are also anxious to see these discoveries put into use. In the meantime, plastics are a fact of life and

disposing of them in an environmentally responsible way is important. If your company is trying to decrease its footprint, contact us about our Environmental Recycling program of your e-waste.

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