Machinery and Equipment Appraisal

The Kanzas company provides independent machinery and equipment appraisal in Ukraine: machine tools, production lines, technological complexes, instruments and office equipment — the active part of an enterprise's fixed assets. Equipment valuation is performed both as a stand-alone engagement and as part of the valuation of a going concern. We have been appraising machinery and equipment for over 20 years, from a single machine tool to the technological complexes of entire plants.

When equipment appraisal is required

• purchase and sale of equipment, including cross-border transactions;
• collateral for bank lending and leasing;
• contribution of equipment to share capital;
• recognition in the balance sheet and IFRS reporting;
• customs value confirmation;
• insurance;
• bankruptcy and forced sale;
• management and investment decisions.

Depending on the purpose, the appraiser determines market value, liquidation value (the price achievable within a compressed marketing period) or investment value.

Documents required

• an itemised list of assets with make, model, manufacturer, year of manufacture, commissioning date, service life, repair history and original cost;
• additional technical documentation for complex assets — for production lines, data on the configuration and number of units, capacity and productivity.

Valuation approaches

Three approaches are applied, consistent with the International Valuation Standards (IVS). The cost approach is often the only feasible option for unique assets with no analogues, special-purpose machinery or obsolete equipment: the replacement or reproduction cost is calculated and reduced by all forms of depreciation and obsolescence. The market approach is used for equipment with a developed secondary market — typically current models of machinery, office equipment and furniture. The income approach applies only to equipment whose income can be reliably measured, such as payment terminals, coffee machines or gaming machines.

Our engagements include the appraisal of the equipment of Ukraine's national public broadcaster, JSC NSTU (Suspilne), and of enterprises in the distillery industry, as well as the valuation of production complexes of major industrial enterprises for bank lending, including syndicated facilities.

Questions and answers

Do you appraise entire production facilities? Yes. We value individual machines, complete production lines and the full machinery fleet of an enterprise, including as part of going-concern and fixed asset revaluation engagements.

Can the appraisal be used for customs or IFRS purposes? Yes. Our reports are used for customs value confirmation and for the recognition and revaluation of machinery and equipment in IFRS financial statements.

How long does an equipment appraisal take? It depends on the number of items and their complexity: typical assets are valued within a few days, while large production complexes are scheduled after reviewing the asset list.

Email us or message us in your preferred messenger to discuss your machinery and equipment appraisal task — we will confirm the scope, timing and fee.