Impairment of Fixed Asses.

 

Under the Corporations Act 2001 (Corporations Act), directors have a responsibility to ensure the financial statements and notes of the company comply with accounting standards and give a true and fair view of the financial position and performance of the company and any consolidated entity.

 

In order for directors and auditors to form an opinion about whether the financial report complies with the accounting standards, an idepth knowledge of AASB standards and corporation laws is vital.

 

The problem for directors can arise because assets lists are rarely correct and depreciation schedules often do not reflect fair market value.

 

Professional valuers and appraisers are a vital tool for companies for a number of reasons, firstly''

 

 

secondly

 

thirdly

 

 

It is therefore important for the value of the assets to be correctly assessed so as not to be over or under estimated.

 

orm an opinion about whether the financial report complies with the accounting standards and gives a true and fair view, as well as about certain other matters (section 307) and report to members (section 309)

We continually research and monitor case law in order to provide the highest level of valuation reports for our clients. Some of the principle and significant case laws comprise the following;

 

 

whether the financial statements and notes comply with accounting standards, and give a true and fair view of the financial position and performance of the company and any consolidated entity, and

 

 

 

Why is the engagement of an independent expert important?

 

Experts in the field of valuations and appraisals usually have specialised industry knowledge and first hand experience in  market conditions that affect the type of assets they specialise in.

 

Assessing assets, particularly plant, equipment, fleets and the like takes

the internal and external experience and expertise applied in audits (including recruitment and training, the use of experts, and specialist industry knowledge)

 

 

 

 

Australian & United Kingdom Case Law

 

Market Value - Spencer v. The Commonwealth of Australia (1907) 5 CLR 418.

 

Role of The Expert Witness - The "Ikarian Reefer" (1993) 20 FSR 563 at 565-566.

 

Admissibility of Expert Evidence - Dasreef Pty Limited v Nawaf Hawchar [2011] HCA 21.

 

Evans Deakin Pty Ltd v Sebel Furniture Ltd [2003] FCA 171 per Allsop J at [676].

 

Expert Opinion Admissibility - Makita (Australia) Pty Ltd v Sprowles [2001] NSWCA 305 (2001).

 

Opinion evidence based on hearsay - Pownall v Conlan Management Pty Ltd (1995) 12 WAR 370.

 

Expert Witness Code of Conduct - Smith v Gould [2012] VSC 461.

 

The Role of an Expert Witness - Davie v Magistrates of Edinburgh (1953) S.C. 34

 

sources: Australian Securities & Investments Commission.