ME201-OOO - Introduction to Machinery and Equipment Valuation

Registration

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

Course Description

This course will introduce appraisal terminology and concepts and provide students with a solid foundation for a career in appraisal of machinery and equipment. This course covers MTS appraisal terminology; functions and purposes of appraisals; introduction of the three approaches to value; depreciation and factors affecting depreciation; field inspection techniques and safety; introduction to the issues of indexes in machinery and equipment appraising; basic pricing exercises for current and obsolete assets; and ethics and professional standards.

*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

Lecture, analysis, and student discussion.  

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
Introduction to appraising
Valuation process
Appraisal definitions
Purposes and uses of appraisals

Day 1—Afternoon
Miscellaneous accounting and valuation definitions
Preparing for an appraisal
Classification of machinery

Day 2—Morning
Review homework assignment
Identification of machinery and equipment
Approaches to value
Pricing, including problems

Day 2—Afternoon
Pricing, including problems (continued)
Depreciation

Day 3—Morning
Review homework assignment
Depreciation and problems (continued)
Indexes and problems

Day 3—Afternoon
Ethics and reporting
Field safety
Course review

Day 4—Examination

Learning Outcomes

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

• Identify the three approaches to value;
• Communicate the requirements of an appraisal (either as an appraiser or someone needing an appraisal);
• Assess the scope of work and qualifications needed to perform an appraisal assignment;
• Understand the concepts within ASA's Code of Ethics;
• Communicate basic appraisal theory;
• Discuss global standards and why we need them (USPAP, IVS, CAS and others); and
• Understand the principals of indexing.