ME204-OOO - Machinery and Equipment Valuation - Advanced Topics and Report Writing

Registration

Please see the "Upcoming Classes" tab for class offerings and registration information.

Course Description

This course provides a comprehensive review of the concepts studied in ME201, ME202 and ME203. It reviews the application of appraisal techniques in valuing an integrated facility (steel mill) and considers various professional standards including USPAP, IVS and Ethics and their relationship to report writing. It also discusses how to develop and write a professional appraisal report. This course takes an in-depth look at the skills needed to address issues of obsolescence (physical, functional and economic), and finally, the course will provide students with the tools for analyzing the following items and ways to apply these appraisal concepts in their day-to-day practice:

• Inutility;
• Complex Leasing Structures;
• Residual Forecasting;
• Fair Rental Calculations (for Leasing); and
• Valuing facilities using all three approaches to value.

*Accredited MTS Members who took the ME201-204 courses for accreditation purposes may not retake the courses for reaccreditation/continuing education (CE) credits. Those who have not previously completed these courses must successfully pass the associated exam to receive ASA reaccreditation/CE credit.  No reaccreditation/CE credit will be awarded for the audio version of this course. 

Instructional Methods

In addition to lectures and materials, the course will also provide opportunities for students to review, discuss and analyze advanced level case studies.

Course Audience

Appraisers, accountants, attorneys, auctioneers, bankers, engineers, leasing company staff, farm managers, forensic consultants, shop staff, and the appraisal community at large who are involved in the valuation of machinery and equipment.

Required Reading

ASA’s Valuing Machinery and Equipment: The Fundamentals of Appraising Machinery and Technical Assets 4th Ed is the authoritative textbook on the theory and methodology of appraising machinery, equipment, and technical assets. The 2020 edition includes revised and updated chapters on topics like the sales comparison approach, appraisal report writing, and valuations for financial reporting, completely rewritten chapters on topics like aircraft appraisals, and a new chapter on ad valorem tax appraisals. It also includes updated appendices with appraisal research sources, an enhanced index, and a wholly rewritten and improved glossary.

Valuing Machinery and Equipment: PDF ONLY
Valuing Machinery and Equipment: Printed Book and PDF

Agenda

Day 1—Morning
Introductions
Review of syllabus and words of advice
Overview of ME201, ME202, and ME203
Review of financial administration
Review of exponential pricing techniques
Review of present value theory
Economic obsolescence

Day 1—Afternoon
Inutility calculation
Review of income approach
Discussion of discounted cash flows
Discussion of discount rates
Steel plant videos to introduce facility and complexity

Day 2—Full Day
Case study—steel mill
This case study uses the three generally recognized approaches to value.

Day 3—Morning
Study of leasing
Residual forecasting
Fair rental value calculation

Day 3—Afternoon
Report writing, USPAP, code of ethics
General review of ME201, ME202, ME203, and ME204

Day 4—Examination

Learning Outcomes

Upon completion of this course, students will be able to:

• Explain and apply the three approaches to value;
• Apply appraisal techniques for leasing, residual forecasting and fair rental calculations;
• Develop and Report a Professional Appraisal Report; and
• Understanding of the role of Standards in the Appraisal process.