Valuer and client reviewing plant and equipment valuation figures on a laptop

Valuation for Accounting Purposes: Financial Reporting, PPA & Tax Compliance

A precise, audit-ready valuation of plant and equipment ensures that tangible assets are recognised at fair value, accurately reflecting their economic contribution — avoiding overstatement of goodwill — while meeting the requirements of AASB 13, AASB 116, tax compliance, internal controls, and external audit.

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Audit-ready valuation reports. Delivered with precision. No surprises.

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What is fair value for plant and equipment under AASB 13?

Fair value for plant and equipment under AASB 13 is the market-based price that would be received to sell the asset in an orderly transaction between market participants at the measurement date. It reflects current economic conditions and assumes the highest and best use of the asset.

For plant and equipment, highest and best use is assessed alongside the applicable valuation premise — whether the asset is valued in-use as part of a going concern, or as available for removal.

Valuer presenting a fair value analysis to a client
Laptop and documents used for a plant and equipment valuation review

Reducing Audit Exposure and Tax Risk Through Fair Value Asset Valuations

Well-executed valuations protect CFOs from downstream issues by ensuring asset values are accurate, defensible, and fully compliant. They reduce financial statement risk, ensure audit alignment, and create a strong governance trail for regulators and tax authorities.

  • Fair Value Measurement for Financial Reporting (AASB 13, AASB 116, IFRS)
  • Fair Value Assessment for Depreciation Schedules, Tax Consolidation & Stamp Duty
  • Impairment Testing & Economic Obsolescence Assessments
  • Asset Valuation for Mergers, Acquisitions & CGU Allocation
  • Revaluation under AASB 116 — ensuring carrying amounts reflect fair value with sufficient regularity
  • Assets Held for Sale — fair value less costs to sell in accordance with AASB 5
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Trusted by CFOs in capital-intensive sectors.

Plant & Equipment Valuation Aligned with AASB 13

Accurate plant and equipment valuations are essential for meeting AASB 13 compliance, as they ensure fair value is measured using market-based assumptions, not internal estimates. This supports transparent financial disclosures, reduces audit risk, and aligns asset reporting with regulatory standards.

  • Fair Value Measurement (AASB 13) for Plant & Equipment
  • Application of ‘Highest & Best Use’ and valuation premises (in-use, in-place, or for removal)
  • Fair Value Hierarchy (Level 1, 2, and 3) for Transparent Valuations — for specialised plant and equipment, Level 3 inputs are typically required as these assets rarely trade in active markets, necessitating professional judgement and documented valuation models.
  • Market Participants’ Perspective & Economic Motivations
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Article: How Fair Value Is Determined for Plant and Equipment Under AASB 13

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Regulatory & Industry Expertise

We work to:

  • AASB 13 – Fair Value Measurement
  • AASB 116 – Property, Plant & Equipment
  • AASB 136 – Impairment of Assets
  • APES 225 – Valuation Services
  • IFRS & International Valuation Standards (IVS)

Proudly serving clients across Perth and throughout Australia in sectors like:

Mining
Logistics
Infrastructure
Manufacturing
Corporate Finance

How Our Valuation Process Works

  1. Define Scope & Requirements — Assess asset class, reporting purpose, and applicable standards (AASB 13, AASB 116, IVS, APES 225).
  2. Site Inspection & Asset Verification — Verify asset condition, specification, and remaining life in accordance with IVS 300 and the IVS General Standards.
  3. Valuation Methodology — Apply market, income, or cost approach (including depreciated replacement cost for specialised assets), with adjustments for physical, functional, technological, and economic obsolescence, and highest & best use considerations.
  4. Client Review & Draft Report — Present preliminary findings and assumptions for review, confirm factual accuracy of asset data, and address stakeholder queries before finalisation.
  5. Fair Value Hierarchy Classification — Categorise inputs (Level 1, 2, or 3) per AASB 13.
  6. Final Audit-Ready Report — Deliver schedules, assumptions, references, and compliance mapping.
Stuart Main, Certified Practising Valuer

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Ensure compliance, mitigate risk, and gain financial clarity with expert-led valuation services.

Certified by the Australian Property Institute (API) — CPV (P&M)
Trusted by finance professionals in mining, manufacturing, logistics & corporate sectors
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