Accounting and audit standards for businesses that carry a lot of machinery & equipment on their books require an updated appraisal in certain situations. The most common of these would involve an acquisition where the business buying the target company would need to allocate the total purchase price to the underlying assets. These include real property (land and buildings), intangible assets such as goodwill, and machinery & equipment.
When the tangible assets are material in value, or if the prior company records are not up to par, you, as the acquiring company, should engage an accredited machinery & equipment appraiser, who will provide an itemized report sign a certification attesting to the independent, unbiased estimate of value as part of the valuation report.
Equipment Appraisal Services (EAS) specializes in appraisals for purchase price allocation and other accounting requirements, while working with business owners, company controllers, and auditors to assist in the estimation of fair market value for the machinery and equipment acquired by the company. Our accredited appraisers comply with the Uniform Standards of Professional Appraisal Practice (USPAP).
Once the report is finalized, If the appraiser is needed to consult with your auditors further during the accounting process, we have significant experience in providing these services as well.