Definition
Machinery (plant) and equipment collectively constitute a general class of tangible property assets. Plant and equipment assets have particular characteristics that distinguish them from most types of real property and that influence both the approach to and reporting of their value. Plant and equipment are normally capable of being moved or relocated and often will depreciate at a significantly faster rate than real property. Frequently, the value will differ notably depending on whether an item of plant or equipment is valued in combination with other assets within an operational unit or whether it is valued as an individual item for exchange, and where it may be considered as either in-situ (in place) or for removal.
(International Valuation Standard 2007, eight edition, Guidance Note (GN) 3, chapter 1.1-1.2 / Indonesian Valuation Standard 2007, Panduan Penerapan Penilaian Indonesia (PPPI- 3, chapter 1.1-1.2)
Scope of Machinery Valuation
Machinery Valuation consist of: machinery and equipment, heavy equipment, furniture-fixture-office-equipment (FFOE), vehicle, ships.
Valuation Approach
The methodologies and approached that are used : Sales Comparison Approach, Cost Approach, Income Approach.