ASA ME203 - The Income Approach & Advanced Topics

Prerequisites

Students must complete ME202 and ME202 prior to taking ME203.

Course Description

This course examines the income approach and advanced cost approach applications to value tangible assets.  The course studies financial reporting and depreciation methods as the foundation for developing cash flow projections. The concept of a weighted average cost of capital is presented for converting future cash flows to present value as part of the performance of a discounted cash analysis for estimating asset value. Advanced cost approach applications along with the identification of functional and economic obsolescence and their causes will also be presented.  Finally, the course concludes with a comprehensive case study problem. Familiarity with the use of financial functions in Excel and/or the use of a financial calculator is required.

Class Date/Time

Tuesday, February 17, 2026 - Friday, February 20, 2026

Class registration will close on Friday, February 13, 2026.

Registration Includes

Virtual Attendees

·Access to virtual zoom sessions will be accessible via education dashboard (login required)

·Electronic student materials*

Class Format - Virtual

ASA is offering the opportunity for students to attend this class live via the internet as a remote participant. Virtual students share the same educational experience as the students in the classroom and can participate live just as if they were attending physically.

Class Schedule

Times Listed in Sydney NSW time zone

·Day 1 - Tuesday, Feb 17, 9:00am - 5:00pm

·Day 2 - Wednesday, Feb 18 Nov 19,  9:00am - 5:00pm

·Day 3 - Thursday., Feb 19,  9:00am - 5:00pm

·Day 4 - Friday, Feb 20, 9:00-1:00pm ET

*The final exam will be administered and proctored on Friday, Feb 20, 2026. Exams are no longer provided in a written format and students MUST have a personal laptop or computer device to complete ASA online exams. For any exam questions or technical/logistic concerns, contact education@appraisers.org. Registrants will be provided more detailed information before class concludes.

Please note: Partial credit will not be awarded for this offering. Students must participate in all the live session(s) virtually or in-person to complete the course and receive full credit following successful completion of the final exam. The virtual session(s) will not be recorded and/or made available after class.

Instructional Methods

Course instruction will include lectures, discussions and individual/group exercises, assignments, along with a case study.

Course Audience

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

Purchase - Valuing Machinery and Equipment, 4th Edition

Learning Level

Fundamental

Learning Outcomes

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

• Apply of income approach techniques for the valuation of tangible assets
• Understand present value concepts and discounting conventions
• Develop a weighted average cost of capital
• Apply advanced cost approach techniques and recognize situations involving functional and economic obsolescence
• Prepare cash flow projections and perform a discounted cash flow analysis 

Continuing Education and Contact Hours

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