ASA ME201 Introduction to Machinery & Equipment Valuation & Cost Approach to Value

This recently revised course is four days, followed by the exam at the end of day four. Students have the option to take the proctored exam immediately following the conclusion of class. In the event students cannot complete the exam, an alternative option will be provided via ASA's partner, ProctorU. More information will be provided to attendees.

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 Process And Theory; Appraisal Terminology And Definitions; Introduction Of The Three Approaches To Value; Ethics, Valuation Standards, And Performing Appraisals; Scope Of Work, Purpose And Use; Levels Of Trade/Standards Of Value; Performing A Field Inspection And Asset Classification; Development Of Useful Life Estimates; Direct Cost Estimating Methods; Depreciation Identification And Methodologies (Physical Depreciation, Functional Obsolescence, Economic Obsolescence; Effective And Weighted Age Calculations; Inutility And Excess Operating Costs.

Instructional Methods

Methods include lectures, discussions and individual/ group exercises, homework and assignments.

Course Audience

Appraisers, accountants, attorneys, auctioneers/liquidators, lenders, engineers, leasing company staff, farm managers, forensic consultants, shop staff, and the appraisal community at large – anybody 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.

In particular, for this course, the following chapters should be read and understood:

• Chapter 1: Introduction
• Chapter 2: Classification and Description of Machinery and Equipment
• Chapter 3: Cost Approach
• Chapter 10: Ethics

Purchase - Valuing Machinery and Equipment, 4th Edition via this link Valuing Machinery and Equipment

Learning Level

Fundamental

Learning Outcomes

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

• Communicate basic appraisal theory
• Understand general appraisal terminology and definitions
• Describe the three approaches to value
• Understand basic appraisal theory and process
• Appreciate appraisal specific standards and ethics
• Identify appraisal scope of work, purpose and use
• Understand the levels of trade and how they apply to the standard of value utilized
• Recognize asset classifications and accounts
• Comprehend direct and indirect cost development methodologies
• Understand various depreciation methodologies and how they apply
• 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

Continuing Education and Contact Hours

37.2 Hours of CE are provided upon completion of the course (including exam hours) due to being 3.5 days.