Product Spotlight: New ASA Valuing Machinery and Equipment Book, Fourth Edition

Q&A with editors of ASA’s new authoritative textbook on the theory and methodology of appraising machinery, equipment, and technical assets.

Editor’s Note: ASA’s Machinery & Technical Specialties Committee recently announced the publication of its new edition of Valuing Machinery and Equipment: The Fundamentals of Appraising Machinery and Technical Assets. Last updated in 2011, the new 2020 edition contains many new and revised chapters, and other beneficial updates. To learn more, we sat down with the publication’s editors, Jamie Allen, ASA, and Garrett Schwartz, ASA.

Q: Congratulations on releasing your updated publication. Tell us more about it and who’s it for.

Jamie: Now in its fourth edition, ASA’s Valuing Machinery and Equipment book has grown to become the authoritative source on the theory and methodology of appraising machinery, equipment, and technical assets. This is largely due to the many dedicated member subject matter experts who participated in this ongoing development effort. Appraisers, equipment management and finance professionals, regular users of appraisals–including attorneys and accountants–and others will all benefit from this comprehensive source of information critical to the valuation of assets within this specialty.

Q: What’s new for this edition?

Garrett: The 2020 edition includes updated and revised chapters on topics such as the sales comparison approach, appraisal report writing, and valuations for financial reporting. ASA’s subject matter experts have completely rewritten chapters like the one on aircraft appraisals, and have written a new chapter on ad valorem tax appraisals. We had a professional indexer create a new index for the book from scratch, making it much easier to look up information by topic, and we completely rewrote the glossary of terms. We also went through and updated most of the appendices, including pages with sources for equipment pricing and general equipment information.

Q: What topics does the publication address?

Jamie: The book includes chapters on topics covering:

• Classification and Description of Machinery and Equipment
• Cost Approach
• Sales Comparison Approach
• Income Approach
• The Three Approaches to Value for a Process Plant
• Appraising Assets in Groups
• Report Writing
• Valuations for Financial Reporting Purposes
• Ethics
• Leasing
• Inventory
• Marine Assets
• Aircraft
• Use of Technology
• Technical Specialties
• Cost Segregation Studies
• International Machinery and Equipment Valuations
• Ad Valorem Tax: Personal Property

As well as bonus, expanded content in appendices covering:

• Accounting Depreciation
• Compound Interest
• Financial Tables
• Quick Reference Tables and Conversion Factors
• Useful Information: Measurements and Estimation
• Licensing of MTS Appraisers
• Pricing and Equipment Data Sources
• Sources of Information and Recommended Readings
• Valuation Process for Financial Reporting

Q: What formats is the new publication available in?

Garrett: The Fourth Edition is available as an electronic PDF file, or as a combo set, which includes a professionally-printed hardbound edition and the electronic PDF. The PDF is available today for immediate download. The hardbound printed edition is in production and ordered copies are expected to be delivered after March 2020.

Q: What is the retail price for the book and where can it be purchased?

Jamie: The retail price for the combo set is $175 members and $195 non-members, while the standalone PDF is $120 members and $140 non-members. Both formats can be purchased online at https://www.appraisers.org/marketplace or by calling (800) 272-8258.

About the Editors

Jamie Allen, ASA, CMI, joined Newmark Knight Frank Valuation & Advisory in 2018 as an Executive Vice President in Valuations and Advisory and the Specialty Practice Leader of the Machinery and Equipment Valuations Group. Based in the Chicago office, Mrs. Allen is responsible for oversight of the group, which focuses on meeting the consulting and valuation needs of her clients as prescribed by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB), as well as, tax compliance and reporting, insurance requirements, loan collateral support, liquidation analysis, internal planning, and fixed asset inventories and management. Jamie has been an ASA member for 12 years, serves on the Society’s Machinery & Technical Specialties Discipline Committee as Secretary and was the inaugural winner of ASA’s new Woman Appraiser of year award in 2019.

Garrett Schwartz, ASA, CEA, is an equipment appraiser with Sencer Appraisal Associates. Based in Northern California, Garrett has performed appraisals for clients across the United States, Mexico, Asia, and Europe. His clients have included the United States Department of Justice, the Federal Deposit Insurance Corporation (FDIC), the United States military, local and regional banks, charitable organizations, business brokers, legal and accounting firms, private individuals, and business clients from single-proprietorships to Fortune 5 corporations. Garrett has been an ASA member for 11 years, serves on the ASA Board of Governors as a Region Governor covering the Western United States, Australia, and the Asian Pacific Rim. He has also held numerous other past member volunteer leadership positions, including most notably ASA NorCal Chapter President.