1. Movable asset valuation covers:
a. Unused assets (new purchases).
b. Used assets:
- Used assets are assets that no longer meet the technical and quality standards of the manufacturer’s original design, whether because of storage conditions or because they have been operated or test-run (regardless of operating time or the quantity of products manufactured) other than at the request of the organisation or individual purchasing them.
- A particular feature of used machinery, equipment, technology lines, etc. (collectively, “assets”) is that their remaining quality is uneven: parts and components may have been replaced, repaired or upgraded to suit the owner’s purpose of use, products, production capacity and conditions, and specific storage and maintenance regime. These factors form the basis on which the valuer selects the appropriate basis of value, valuation methods and principles.
- Selection of the basis of value: the value of a used asset may be determined on one of two bases – market value or non-market value – depending on how commonly the asset is traded, its remaining quality ratio and the purpose of the valuation. The survey results for the used asset, its remaining quality ratio and the information collected on the type of asset to be valued form the basis for selecting and determining the basis of value.
c. Assets with no remaining use value:
- Salvage value is a non-market basis of value under the Vietnamese Valuation Standard on the basis of value (Circular No. 30/2024/TT-BTC). It can be described as follows: “Salvage value is the estimated value receivable at the end of an asset’s useful life after deducting the estimated costs of disposal. Salvage value reflects the residual value of an asset (other than land) when it has reached the end of its useful life and is sold for disposal. The asset may still be repaired or converted for a new use, or may provide spare parts and components for other assets that are still in operation.”
- Valuing assets that no longer have use value (for their main purpose) is not simple. It requires separating and classifying the proportions of the materials making up the asset, estimating weights when it is not possible to weigh, measure, count or test-run each asset, and determining whether parts and components of the disposed assets can still be reused – because during operation such parts may have worked unevenly or been repaired, replaced or upgraded, resulting in uneven actual wear and tear.
2. Assets subject to valuation:
- Machinery and equipment lines.
- Specialised equipment: medical equipment, school equipment, mining equipment, etc.
- Transport vehicles: trucks, passenger cars, crane trucks, ships and boats, barges, etc.
Related Articles
