fair market value in continued use
Super Truck Appraisals: Equipment Appraisal on the Road
I got my first Super Truck limited edition CAT scale collector card October 2010. These Super Truck Limited Edition cards–for those of you, like me, who didn’t already know–are slick full-color trading cards that feature working trucks. Really amazingly customized big rigs that stand out from the transportation most of us see cruising down the highway, hauling chickens or lumber, produce, automobiles, or production goods. These trucks really are, well, super.
Restaurant Equipment Appraiser has Restaurant Industry Background
Over the Memorial Day weekend, I had the priviledge of inspecting a series of restaurants for a machinery and equipment appraisal. Because the owners declined to provide a listing of Subject Assets, I took my lovely and clever wife along as “clipboard” assistant. She wrote while I measured, called out manufacturer names and model numbers, took pictures with my faithful Casio Exilim.
One reason I like restaurant appraisals is that I spent several years in my 20s cooking in Aspen, Tucson and Phoenix. It’s fun to be back in a professional kitchen, chatting with the chef about Hobarts and Groen stock pots, even if I am using a tape measure instead of a spatula! So I’m cook and food and beverage controller turned Restaurant Appraiser.
Proposed Update of Valuation Terms
In April, the American Society of Appraisers released a proposal to update the current Definitions of Value approved by the Machinery & Equipment Committee and the American Society of Appraisers Board of Governors.
Over the next few blogs, I’ll share the entire definition list, but today I’d like to concentrate on 2 areas that caught my attention right away:
The first thing I noticed was the insertion of the term “opinion” in most of the definitions.This makes a lot of sense as valuation is not an absolute measurement of value but one arrived at through research and, in the words of former PCAOB Chief Auditor Thomas Rays, “the appropriate application of seasoned professional judgment.”
Premises of Value AKA Levels of Trade
The below definitions are from Valuing Machinery and Equipment, the American Society of Appraisers (2000).
Because the machinery and equipment appraiser deals with a variety of assets, most of which can be moved, it is necessary to recognize different premises of value. These can be broadly broken down into categories, distinguished mainly by an asset’s anticipated use.
