The Importance of Putting Together an Asset List Before Machinery and Equipment Appraisal

When engaging an appraiser to have your machinery and equipment appraised, one of the first things that a company should do is make sure they have an up-to-date, complete asset list of the machinery and equipment they’re going to have appraised. Many companies don’t keep their asset lists up to date, but it can help save a company lots of time and headaches by revisiting its asset list on a semi-regular basis to make sure that all the information is as complete as possible.

An asset list is not the same as a depreciation schedule, which is an accounting procedure for determining the amount of value left in a piece of equipment. For the purposes of a machinery and equipment appraisal, an asset list provides all the necessary information required by an appraiser to determine as accurate a value of your equipment as possible. There are some key pieces of information that every asset list should contain. Here are a few:

• Client asset number

• Location

• Year of the equipment

• Make

• Model

• Year you purchased the equipment

• Cost of purchased equipment

• Current depreciation amount

• General specifications – i.e., size, weight, etc.

• General description of the asset

• Meter count: hours / odometer, etc.

• Serial number or VIN

• General Item/Property Name

• Location of equipment or machinery

By having a complete, up-to-date list you can help to speed up the appraisal process and potentially increase the value of your appraisal. If an appraiser doesn’t have a complete basis for valuation (i.e., there is information missing), a more conservative value may be derived.

If you have questions about what should be included in your company’s specific asset list or would like more information about EquipNet’s valuation services, please contact us.

Categorias: Asset Management

Tags: asset appraisals certified appraisals equipment appraisal,