Valuation of assets

Asset valuation provides invaluable information about value

The valuation of your assets provides any company with information of inestimable value, whether it is carried out to make decisions in operations of purchase, sale or rental of assets, or for the preparation of the accounting statements. These must reflect the economic, financial and patrimonial reality of the company so that the shareholders, the management team or other possible interested parties know the position in which the company is located; for this, it is essential to have an objective valuation of the company’s assets and from it to prepare the financial statements in accordance with the General Accounting Plan, PGC or the International Financial Reporting Standards, IFRS.

In all those listed companies or in their IPO processes, the valuation of assets acquires vital importance to promote market transparency.

Also, knowing the evolution of the company’s real estate assets can give the company a privileged position when making decisions on how to manage a certain real estate portfolio.

That is why Euroval, following the recommendations of the National Securities Market Commission, CNMV, and aware that this type of operation transcends traditional valuations, has established, for the valuation reports it carries out for these purposes, a series of very strict requirements aimed at achieving the rigor, objectivity and independence necessary in its preparation.

Frequently Asked Questions

Why is it necessary to value fixed assets?

Knowing the real and up-to-date value of a company's fixed assets is essential for its shareholders, financial institutions, insurance companies, auditors, etc., and ensures that its accounting and financial information is aligned with reality. The mandatory compliance with accounting regulations, either the General Accounting Plan (PGC) or the International Financial Reporting Standards (IFRS), for preparing financial statements, makes it necessary to have a precise understanding of the value of business assets. Revaluation or calculation of asset impairment can be carried out based on the market value determined by an independent expert. To account for the value of assets, the fair value criterion (market value), in whose calculation Euroval provides the highest possible reliability, can replace the historical cost criterion (acquisition price or production cost). A global market like the current one obliges companies to comply with the International Accounting Standards IAS/IFRS of Financial Reporting (IFRS). Euroval provides the necessary advice to adapt the value of assets to these standards. In this line, before the initial public offerings of companies, advice on the valuation of assets is required to comply with these standards. Being properly advised when taking certain positions in operations of purchase, sale or lease of assets contributes to obtaining a greater profitability in them.

Internal control of asset management implies knowing their value and its evolution. Decision-making on its management requires the study of the alternatives of use and destination, the knowledge of the evolution of the market and of the possible changes in the circumstances of the same (regulatory, urban, modal changes, etc.). In situations of lack of liquidity, the postponement of debts with the administration requires an objective valuation of the assets of the company.

What methods does Euroval use to prepare an asset report?

All companies listed on the stock exchange are governed for the purposes of accounting valuation of their assets (consolidated accounts) by the IAS/IFRS and the rest of the companies based in Spain by the General Accounting Plan PGC of 2007. Euroval has adapted its technical processes to the valuation criteria contemplated in both regulations for the reports it makes for these purposes. Thus, depending on the type of asset, and the consideration of this for accounting purposes (inventories, investment property, property for own use), Euroval technicians apply the valuation method that is appropriate to the aforementioned regulations to obtain the fair value, the net realizable value and the value in use.

For other types of purposes, the valuation systems that it has established are based on reasoned and internationally recognized criteria by current regulations, adapted at all times to the purpose of the report.

Who should do a valuation?

The valuation reports are carried out by teams of experts in the field, in order to make a homogeneous and justified application of the valuation rules adapted to the purpose of the report and the type of asset to be valued. Euroval has teams of professionals who have extensive experience and knowledge (architects, engineers, economists, lawyers, etc.,) who are supervised by their control and validation team, which ensures the final quality of the report.

How Long Would it Take to Receive the Report?

Once the necessary documentation has been delivered by the client and, if applicable, the visit to the property has been facilitated, Euroval will deliver the report within a minimum period of five working days, except in cases of extensive portfolios or complex assets, for which they will provide in advance a delivery period in accordance with the nature of the request.

Why Euroval?

Euroval is governed at all times by the principles of rigor, independence and objectivity. The rigor is ensured by the strict valuation standards to which we are subject, which establish the methodology and valuation criteria best suited to the purpose of the report. Independence is safeguarded by the composition of the shareholding, governing body and experts of the company, who are not linked to any person, company or entity that may generate a conflict of interest with the assets to be evaluated or expertised. We dedicate ourselves solely and exclusively to valuation, both in Spain and in other countries, acting according to what the regulations establish in this regard and monitored by the supervisor system to which the company is subject, which guarantees its objectivity.

For all of the above, we offer you the preparation of this type of report with a methodology according to the nature of the asset and the purpose of the report, and where appropriate, in accordance with the requirements of current regulations. Euroval is a company approved by the Bank of Spain and by the CNMV, our appraisal reports have a total guarantee of objectivity.