At the time of insurance it is essential to ensure that the assets are neither under insured nor high premium is paid. It is not uncommon to come across a situation where business has to suffer a loss just because of being under insured.

We, at B&A are specialised in understanding your asset insurance valuation need as per insurance policy wordings.

Over the years clients’ requirement of valuation has changed significantly. Appropriate reporting of assets in financial statement as per International Financial Reporting Standards (IFRS) has become very crucial for the companies.

IFRS has resulted into enhanced comparability and reporting transparency. It has also eliminated multiple reporting.

IFRS requires Fair Value reporting and Depreciation to be based on useful economic life of asset. Hence, it has become very necessary for companies to undertake valuation of their assets from qualified and independent valuers.

At B & A, we keep ourselves abreast with the latest knowledge vis-a-vis relevant accounting and valuation standards. Our valuers have sound understanding of reporting of assets at fair value during initial recognition as well as measurement after initial recognition to comply with relevant provisions in International Accounting Standards IAS16 (Property, Plant and Equipment) and in IAS 13 (Fair Value Measurement).

As per International Financial Reporting Standards (IAS 36) Impairment of Assets; assets carrying amount should not be more than its recoverable amount. Impairment testing of the assets is necessary when carrying amount exceeds the recoverable amount. Following are some of the indicators leading to impairment.

External factors such as:

Significant decline in market value of assets;

Significant changes in the technological, market, economic or legal environment in which assets operate;

Major increase in market interest rates;

Carrying amount of the net assets of the entity is more than its market capitalisation;

Internal sources of information:

Assets have become obsolete or suffer from physical damage;

Assets may have become idle or redundant;

Economic performance of the assets significantly deteriorated;

B&A is also known for its specialised knowledge to undertake valuation for impairment of assets.

Companies can have several options to avail finance either for day to day operations or for any capital projects. Sale and lease back of assets (Property, Plant, Machinery and Equipment) is one of the ways by which company can sell their assets to the lessor and retain the same asset as a lessee for a specified period with an option to buy the same assets at the end of lease period. Such transactions are known as Sale and Leaseback transactions.

At B&A, we have sound knowledge of undertaking market valuation assessment of property plant, machinery and equipment for sale and lease back purposes.

Asset due diligence at the time of mergers / takeovers covering all the aspects to ascertain asset base, liability on account of regulatory measures, imbalances in different production sections and cost of cure.

The approaches to valuation can differ depending upon the circumstances and the object and purpose for which it is being made.  A proper valuation of an undertaking or its asset/s, would provide a meaningful insight/s and aid the process of decision making; while in another context it could be the valuation of a business or its intangibles, which are more relevant factors to be reckoned, while doing a valuation exercise. What makes it exciting and interesting is the fact that, valuation of the very same business or asset, could have material variations, when looked at from the perspective of a seller or a buyer. Given a comprehensive briefing on the context in which the valuation is requested, B&A, would not only look at the issue from a seller’s perspective but also factor in unique benefits or synergies that a potential buyer is likely to derive from the acquisition and build this aspect into its expert and objective advise.  This fosters in arriving at a ‘fair value’ and protecting interests of various stakeholders.

Valuation is both an art and a science. We, at B&A, consider not only the scientific principles but the unique features and circumstances that could significantly impact the value a seller could realise or a buyer could justifiably pay.  B&A with its vast experience is able to bring out many of these nuances.

Any litigation matter proceeds through many complex and time consuming steps like pleadings, discovery, trial and possibly an appeal. Often a claim or defence requires support from expert witnesses to explain technical information or validate an agreement. At B&A our extensive experience and enriched technical expertise we provide litigation support to any asset valuation matter.

Based on facts and circumstances of the case, Courts have held that the buildings are plant and machinery and vice versa. By applying the appropriate judicial pronouncement to a particular case helps in reducing tax liability.

In case of specialised assets it is essential to look into finer aspects of case. At B&A, we undertake valuation supporting with appropriate judicial pronouncement.

Parameters affecting rent are anticipated and evaluated, for this purpose search for comparable sales, rentals and yield analysis is carried with relative merits and demerits.

Sale by private treaty, tender or auction as desired by the clients.