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34 questions archived.
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Aug 2010

Do real world disposition strategies differ from the assumptions made in inventory appraisal definitions?

Yes, it can, because the assumptions set forth are hypothetical and do not always mirror the exit strategy actually executed.

Jul 2010

How does an appraiser determine the useful life for machinery & equipment?

There are 3 excellent resources generally used: the OEM, ASA life charts, and Marshall and Swift life charts.

Jun 2010

A major competitor made an unsolicited (and significant) offer to acquire my small business. What should my next step be?

Fortify yourself with timely information about developing market trends and make an informed decision – one that ensures the highest results.

May 2010

What does it mean to value the “workforce” of a company, and why is it necessary?

Determining the value of a company’s workforce is necessary for financial reporting purposes and is valued using the same approaches applied to any other asset.
Apr 2010

How do I facilitate an accurate business enterprise valuation?

A business enterprise valuation is like any other analysis in that the quality of the report depends on the quality of the information utilized.
Mar 2010

I need a “certified” appraiser. Should I look for ASA, AM or MAI? Or CVA, ABV, AMEA, SRA or SRPA?

While state certifications are common for real estate, the appraisal of other types of assets do not require licensing or certifications.

Feb 2010

Why have slow-moving and excess inventory levels spiked?

Negative factors, added to the existing economic recession and restricted credit markets, has resulted in an “over–inventoried” position.

Jan 2010

When is it appropriate to apply a “business valuation overlay” on an asset-based lending project?

A business valuation overlay should be applied when assets are highly specialized and/or installation intensive.

Dec 2009

What is the new “Codification” issued by the FASB, and how does it affect U.S. public companies?

The “Codification” imposes a new structure for GAPP, without amending the guidance that GAAP provides, but modifies the way that one accesses, references and documents U.S. GAAP.
Nov 2009

Can I use net book value to estimate forced or orderly liquidation values of machinery and equipment?

No. Never!
Oct 2009

Does “FOB” make a difference in a liquidation scenario?

Yes, this contract term determines who has the burden of the cost for handling, transporting to the dock or shipping area and loading and can impact liquidation recovery.

Sep 2009

What should I be considering when working with a third-party to buy or sell used machinery and equipment?

There are two things you should consider to ensure satisfaction: reputation and experience.

Aug 2009

What is a WIP buildout analysis and when should I request one?

A buildout estimates the value of WIP on an “as-complete” basis, with further manufacturing.

Jul 2009

What are the different types of liquidation sales and which produces the highest return on the assets being sold?

There are three primary types of liquidation sales: auction sales, orderly liquidation sales and sealed bid sales.

Jun 2009

Has the Financial Accounting Standards Board issued any clarifying statements concerning SFAS 157?

Yes. Several FASB Staff Positions have been released to provide additional clarification to SFAS 157.

May 2009

In an inventory appraisal, is seasonality still a consideration during an economic crisis?

Yes. An economic crisis can level out the peaks and valleys associated with sales and inventory levels.
Apr 2009

How do market conditions affect how a real property appraiser analyzes comparable sales?

Good comparable information is required both prior to and after change in order to estimate trends.

Mar 2009

What is a "desktop" machinery and equipment appraisal and when should one be considered?

A desktop appraisal should be considered only to address general questions relative to value.

Feb 2009

Are there things I should be considering now to prepare for a property tax appeal in 2009?

Yes! There are several things you should be doing now to get a heads up on your taxes.

Jan 2009

When is it suitable to use “in-place” or “in-use” value definitions for lending purposes?

A “continued use” conclusion may be the most likely scenario in which certain assets could be sold.

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