PLANT & EQUIPMENT VALUATION FACULTY
Plant as in this context means a factory or place where power is produced or where an industrial process takes place for the manufacture of goods and services (8 Edition, Oxford Dictionary). Equipment is the large machinery or electronic gadgets used in industrial process for maximum production of named goods. More so, Equipment is a type of fixed assets used by a company in its business operations and report on long-term assets section of the balance sheet under the line item, and it is a piece of capital investment that a company has purchased to perform a specific task for the business.
Large scale manufacturing or production unit infrastructure works usually involve the acquisition of plants and equipments for maximum and efficient production of a particular goods or service for optimum returns on investment. Some of these plants include a vehicle or car manufacturing plants, beverage production plants oil exploration and production plant, power production plants, among others. Whereas example of Equipment includes office task, tools, production machine, airplane, vehicle etc. As enunciated by the National President Dr. Patunola Ajayi, "our noble profession must keep abreast of the changes in the profession and strive to position the members to obtain specialization in plant and equipment valuation practice.
He made this call at the official handing over and Award of Honour in Lagos, observed that the members have not unlock the wealth in Plants and Equipment valuation, which is robust solution to grow the economy. And that Plants and Equipment is vital in business operations, urged members of the institution to review the criteria by which the faculty will assess and monitor the competence of members to prepare valuations in accordance with International Valuation Standard Council (IVSC), Royal Institute of Chartered Surveyors (RICS) and Nigeria Institution of Estate Surveyors and Valuers (NIESV) guardians notes." The immediate past chairman of the faculty, Samson Agbato, said the relevance of Plants and Equipment valuation is as important as the professional impetus and dexterity of its members input to the economy cannot be over emphasized.
In present day, Nigerian Companies has come to rely on their assets as the major financing tools for their business, this is further justified by knowledge that Property, Plant and Equipment account for a range between 40 85 percent of the total assets and high net worth of investment decision by investors financiers alike", he said.
MISSION, VISION AND OBJECTIVES OF THE FACULTY
To empower members of Nigerian Institution of Estate Surveyors and Valuers through capacity development in specialized skill of Plants and Equipment valuation and thus elevating ethics and standard of practice to globally acceptable practice.
For members of Nigerian Institution of Estate Surveyors and Valuers to earn recognition as expert in Plants and Equipment valuation matters, and to looked up for skill acquisition.
i. Create awareness of the infrastructure, Plants and Equipment valuation faculty of the estate surveying and valuation profession in Nigeria.
ii. To promote ethics and professionalism among members in carrying out assignments.
iii. To provide leading edge training, and knowledge impartation for specialization.
iv. To develop our skills and competences by encouraging international exposure and credentialing of members.
v. To inculcate in members the need for compliance with international best practices and due regard to Nigerian regulatory laws on plants and equipment valuation.
vi. To help propel all members to greater heights of professional excellence.
vii. Ensuring sustainability in the practice of Estate Surveying, plants and equipment Valuation in order to achieve the strategic goals of NIESV.
SCOPE OF THE FACULTY
A scope of work shall be prepared and confirmed in writing that addresses the matters set out below. For certain Plants and Equipment classes or applications the scope of work may be prepared at the outset or during the purpose of the valuation assignment but before the valuation and report are finalized (IVS 101).
I. Identification and state of the valuer.
II. Identification of the client and any other users.
III. Purpose of valuation. The purpose for which the valuation is being produced is clearly stated.
IV. Identification of the assets, Plants and Equipment to be valued.
V. Basis of value. The valuation basis must be appropriate for the purpose. The source of the definition of any basis of value used shall be set out.
VI. Date of valuation. The date is defined in IVS as the day on which the opinion of value applies. This may be different from the date on which the valuation report is to be issued or the date on which investigation are to be undertaken or completed.
VII. Extent of Investigation. Any limitation or restriction on the inspection, inquiry and analysis for the purpose of the valuation shall be set out.
VIII. Nature and source of the information to be relied upon. The nature and source of any relevant information that is to be relied upon without specific verification during the valuation process shall be agreed and recorded.
IX. Assumptions and special assumptions: All assumption and any special assumptions that are to be made in the conduct and reporting of the valuations shall be recorded. Assumptions are matters that are reasonable to be accepted as fact in the context of the valuation assignments without specific investigation and verification. Special assumptions are often used to illustrate the effect of changed circumstance on value. Example: that a proposed building had actually been completed on the valuation date and that a specific contract was in existence on the valuation date which had not actually been completed.
X. Restriction on use, distribution or publication. Where it is necessary or desirable to restrict the use of the valuation or relying upon it, this shall be recorded. If matters are identified that are likely to cause the valuation to be qualified, this shall also be recorded.
XI. Confirmation that the valuation will be undertaken in accordance with the IVS. While confirmation of conformity with the IVS is required
XII. Description of report: Confirmation on the format of the report to be provided shall be agreed and recorded. Reference shall be made to any of the report contents specified in IVS 103 Reporting that are to be excluded.