The BIG 3 C's of Asset Valuation

When it comes to asset valuation there are three critical elements that are important.  These three things should run through everything that you do.  They are the foundations of all asset valuations you will either undertake or commission from others.

Think of these as your Asset Valuation 'Mantra'.

If you can follow the BIG 3 C's of asset valuation you will not go too far wrong.  That is why every aspect of learning and training within the Asset Valuation Circle is shaped around these 3 elements.

Scroll down for a brief summary of each of the BIG 3 C's, and why these should be important to you.

If you join the Asset Valuation Circle then you will find we will be delving into each of these in much more detail over the coming months, both in the online pre-recorded training modules and in the LIVE Asset Valuation Labs.

Compliance

Asset Valuations are governed by very strict rules and regulations, that dictate how and when the asset valuations are undertaken.

It is vital that those undertaking the asset valuations have a good level of knowledge of these rules. 

If they haven't then this could make for a very uncomfortable audit process for valuers and accountants alike.

Consistency

If there is one thing that auditors love to find, it is inconsistency in valuation approach and assumptions.

The risk of this is heightened where there is a large team undertaking the valuations, without a clear set of standards for all to follow.

Consistency is not only important within the current year of the valuation programme, but also between years.

Comparables

Asset Valuations must be founded on good evidence.  Not only that but that evidence should be reliable and as recent as possible.

The audit process will rightly challenge valuers to explain how they arrived at their opinion of value. This is healthy.

It is vital that there is a narrative that explains the process that led to the valuation conclusions.