This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Draft IVSC guidance note on plant and equipment

  • IVSC (International Valuation Standards Council) (lt green) Image

17 Sep 2004

The International Valuation Standards Committee (IVSC) has invited comment on a proposed Valuation Guidance Note 3 Plant and Equipment (PDF 203k).

The draft discusses various approaches to valuing plant and equipment and provides guidance for valuations that meet the requirements of accounting standards, particularly IAS 16 Property, Plant and Equipment. The draft points out that the measurement objective for financial reporting purposes is generally market value, defined as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion". The draft notes that "although the concept, use, and application of non-market bases of value may be appropriate under certain circumstances, the valuer is responsible to ensure that if such value is to be found and reported, it will not reasonably be construed as a representation of market value". Comments are due 31 October 2004.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.