Tangible Fixed Asset Valuation
This valuation service is prepared for the purpose of determining the current market value (fair value) of tangible fixed assets, and rights benefits based on real estate, owned by the corporations, according to Turkish Accounting Standards and IFRS.
The tangible assets are defined in accounting system as follows;
- 250 Lands and Lands
- 251 Underground and Surface Arrangements
- 252 Buildings
- 253 Plants, Machines and Devices
- 254 Vehicles
- 255 Fixtures
- 256 Other Tangible Fixed Assets
- 257 Accumulated Depreciation (-)
- 258 Investments in progress
- 259 advances are recorded in their accounts.
Although accounts numbered 257, 258 and 259 are not included in the valuation of tangible fixed assets, the records kept in these accounts include records that we use in our valuation studies, especially in the valuation of ongoing projects.
When tangible fixed assets are purchased, they are accounted for at cost in accordance with the concept of cost basis. VAT is not added to the cost. In accordance with the periodicity principle of accounting, valuation reports should be prepared as of year-end closing or quarterly periods.
According to the accounting standards, the revaluation method used in accounting for tangible fixed assets aims to determine the fair value of the related asset. Fair value: It is the amount that should arise in case an asset changes hands or a debt is paid between knowledgeable and willing groups in a mutual bargaining environment. Normal market conditions are very essential in determining the fair value.
In valuation reports, market approach, cost approach, and income approach are used as specified in international valuation standards. Although the subject varies according to the nature of the asset, in valuation, at least one of these approaches is generally determined by using two approaches.
We have a very multidisciplinary valuation team, and we appoint CMB licensed valuers who have an appropriate background in the asset type. For example, for land valuation studies we appoint Survey Engineers or Urban Planners; Civil Engineers or Architects in buildings, and experienced mechanical engineer valuers in the valuation of machinery and equipment. The valuation reports are prepared by the valuers and reviewed by our auditors with at least five years of experience.