Appraising, reappraisal of fixed assets

Appraising of the fixed assets is a reappraisal of fixed capital, which is conducted with sufficient regularity, the purpose of which is to bring the actual value to a real market indicator for accounting and analysis, calculations and economic forecasts, as well as to get the generalized average indicators and characteristics.

Reappraisal of fixed assets allows the optimization of the income tax and property tax. The balance sheet value of the property will reflect the market price, respectively, unprofitable companies, have the opportunity to reduce property tax, and highly profitable companies, after reappraisal of the fixed assets, will be able to reduce income tax by increasing depreciation payments with an increase in value.

Appraising of fixed assets at their market value has a lot of advantages. First, it contributes to increasing the reliability and transparency of accounting data and provides all interested parties (tax and other government agencies, shareholders and equity holders, creditors, investors) with opportunity to make an adequate picture of its assets and their real value based on an analysis of the company's balance sheet. That is, knowing the exact market value of all the main assets of the enterprise, the interested party (for example, potential investor) can calculate the capitalization of the company and greatly facilitate the investment decision-making process for the enterprise.

In addition, the will to always reflect assets in accounting at their real value increases the credibility of the company's management, which thus shows its openness to potential partners. Second, the reappraisal of fixed assets at market value provides objective benchmarks for top managers of the enterprise and allows them to improve the quality of asset management and unify management, tax and accounting data, which in turn will contribute to the growth of enterprise management efficiency.

Reappraisal can be carried out for all fixed assets or for homogeneous groups of property. All types of fixed assets can be reappraised - buildings, structures, equipment, vehicles, intangible assets. Another important condition for the reappraisal of the asset is its frequency - that is, after reappraising its property once, in the future, the company must reappraise it regularly, once a year at the beginning of the year.

Objects of reappraisal of fixed assets are the following assets:

  • Buildings and structures;
  • Working power machines and equipment;
  • Computer engineering and office equipment;
  • Measuring and regulating devices and equipment;
  • Vehicles;
  • Tools;
  • Inventory for production and household inventory;
  • Construction in progress;
  • Perennial plantations;
  • Including conserved fixed assets in reserve.

Appraising and revaluation of fixed assets is required:

  • for optimization of taxation;
  • for transactions of purchase, sale and exchange;
  • for a loan secured by security assets;
  • in resolving property disputes;
  • in debt restructuring;
  • in determining the contribution to the charter capital;
  • in determining the amounts of insurance sums;
  • in carrying out a bankruptcy procedure of a company;
  • in case of disputes in relation to the property.

THE ROVEX Appraising Company has a unique experience in carrying out work on the appraising and reappraisal of fixed assets of large Azerbaijani enterprises. Accreditation of the company in state and commercial structures shows the quality of services provided in the field of appraising and reappraisal of fixed assets of enterprises, and also indicates a professional level in the approach to appraising.

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