Asset Valuer Pro provides a range of advantages over the traditional approaches to valuation via the use of external consultants.
These include :-
The annual cost of a subscription is fixed for the period of the subscription and works out significantly less than the cost of engaging external valuers or engineers
Increased assurance over compliance
The system and algorithms are kept up to date by internationally recognised financial reporting valuation experts. The various accounting standards, concepts and disclosure requirements are constantly changing. Whether they are based on IFRS or IPSAS the experts ensure the solution and algorithms are kept up to date and that all outputs reflect the latest versions of the standards.
Control of Timelines
It unfortunately is not uncommon for external valuers to fail to deliver their valuations on time. There may be many valid reasons but at the end of the day it creates significant problems with timelines.
Asset Valuer Pro however enables entities to take full control over the entire process enabling phases of the work to be undertaken when desired and all outputs reviewed by external audit and finalised well before financial year end.
Control over data, hierarchy, inputs and outputs with instant update
Valuation is an exercise in professional judgement and relies, just like budgeting or modelling, on a range of assumptions and design of an asset hierarchy. Also, as with budgeting and modelling, once an initial result is produced it is necessary to review the results to ensure they make sense and are reasonable.
External valuers often use their own default assumptions and asset hierarchy rather than spend the time and effort investigating, reviewing and customising the assumptions and asset hierarchy with their clients. Additionally, if changes are required the process to discuss with external valuers and then wait for the reviewed results can take weeks and can seriously impact over-riding timelines.
Asset Valuer Pro enables entities to develop and adjust their own assumptions to ensure the outputs reflect their own understanding of the asset portfolio. If adjustments are required they can be adjusted quickly with the impact seen instantaneously. Asset Valuer Pro puts the entity in total control of the valuation results and timing.
Traditionally one of the biggest concerns expressed by the external auditors is the high level of inconsistency between valuations from year-to-year, across asset classes and in particular between different external valuers. Changes from year-to-year impact the financial statements and potentially could result in disclosure of prior period errors, restatement of the opening balances or even a modified audit opinion.
Asset Valuer Pro enables entities to ensure a consistent methodology across all asset classes with consistent assumptions from year-to-year ensuring variations in the values are kept to a minimum.
Value added analytical reporting
Valuations are traditionally provided by external valuers in PDF and Excel format. One of the great advantages of Asset Valuer Pro is the extensive range of analytical and other value-added reports and tools that enable an entity to interrogate the underlying data and inputs. For example – standard report including analysis of the portfolio at a component, asset or asset sub-type level based on condition or valuation stratification.
Financial Reporting and Disclosures
In addition to the valuation Asset Valuer Pro provides the full financial reporting and disclosure package required for the financial statements. This includes all the necessary information for general disclosure notes including IFRS13 Fair Value disclosures.
The greatest value-added capability however is the ability to auto-generate the full financial period ‘movements reconciliation’ including the calculation of ‘depreciation expense’, ‘losses on part-disposal’ and ‘asset revaluation adjustments’ at component, asset and entire asset class level.
Protection from loss of knowledge
Asset Valuer Pro serves as a central data repository of all valuations and supporting documentation. This even includes position papers, audit issues and other documents, photos, floor or site plans which provide a historical record.
Even if staff leave the organisation or move to a new role the knowledge, methodology and underlying assumptions are stored centrally along with all the archived data ensuring that there is no loss of knowledge and the valuation process proceeds efficiently and effectively.
Efficiency of External Audit
The entire Asset Valuer Pro process has been developed to ensure efficiency and effectiveness of the external audit process. The system is designed to support audit with satisfaction of the audit assertions and includes a range of tools to assist with validation and analytical review. Audit can also be provided with online access enabling the majority of work to be done from the comfort of their own offices.
Audited valuations archived to ensure data is preserved
Once a valuation is audited and published in the financial statements it is critical that no changes are able to be made to the valuation. Asset Valuer Pro includes a ‘valuation status’ process to log progress of the valuations. This includes an archive process that ensures no further changes can be made to valuation once audited and published.
Asset Management at no extra cost
Asset Valuer Pro is based on the full integration of asset accounting and asset management and as a result delivers a wide range of advanced asset management reports and capabilities. These include the ability to produce 50 years cashflow projections for renewals, calculate cost to bring to satisfactory, detailed condition analysis and a whole-of-lifecycle modelling and predictive tool.