Valuation services for accounting & insurance purposes

Valuation services for accounting & insurance purposes


SCE Group is a privately owned Australian enterprise specialising in:

  • The provision of plant and ancillary equipment to heavy industry and mining operations for the management of bulk raw materials, production by-products and industrial cleaning applications. This includes the transfer, transportation, stockpiling and management of raw materials;

  • The collection, recycling and reuse of industrial and mining by-products;

  • The quarrying and crushing of materials for road making and construction industries;

  • The production of road pavements and the blending of quality aggregates for the construction industry through the processing of quarried materials and the recycling of industrial by-products and demolition spoil.

SCE Group develops cost effective, innovative and efficient material management solutions for its clients and takes pride in the quality and effectiveness of the service provided.

With Logistics and transport, SCE port services, materials, recycling, industrial, steel and mining services there is a large range of diverse assets required to support the company operations


Provide a valuation of motor vehicles, plant & equipment at various locations. The project involved coordination & inspection at 7 sites across NSW over 6 days at an effective date of 30 June 2015.

To assist with end of year reporting and company management needs the valuation was requested on the following bases

  • Fair Market Value in continued use basis is the estimated amount, expressed in terms of money, which may reasonably be expected for a property in an exchange between a willing buyer and a willing seller, with equity to both, neither under any compulsion to buy or sell, and both fully aware of all relevant facts, including installation, as of a specific date and assuming that the business earnings support the value reported. This amount includes all normal direct and indirect costs, such as installation and other assemblage costs to make the property fully operational.^


  • Orderly Liquidation Value basis is the estimated gross amount, expressed in terms of money, that could be typically realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on as as-is, where-is basis, as of a specific date.^

Valuation Process

Benefits of an EOFY valuation

  • Ensure all insurance covers are adequate: A valuation report enables a review of insurances to reduce the risk of underinsurance, co-insurance or conversely over insuring your business assets. This reduces the exposure of the directors of a company who can be penalised for misrepresentation in the event of a claim.  

  • Enables management to make decisions based on Fair Market Value: The use of conventional cost-based valuation techniques can substantially understate machinery values in fixed asset intensive industries especially in mining related assets. The preparation of a valuation report in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) ensures a consideration of all 3 approaches to value including Cost, Sales Comparison and Income approach.

  • Prepare & ensure the asset register is up-to-date: The asset register is the cornerstone of the asset management framework for any business. The asset register keeps asset information, such as life-cycle information, that can assist with asset planning, performance monitoring, repair and maintenance tracking/budgeting and CAPEX.

  • Assess the Quality of the Asset Management Plan: Where a company has followed good asset management principles & maintains its assets in good condition you would expect to see the fair market value being quite high compared to the written down value of the company assets. The mapping of the ratio movement over 5 years would provide a powerful insight into the quality of the asset management plan & maintenance schedule.

  • Compliance with Australian & international accounting standards: including but not limited to ensuring a company’s assets are carried at no more than their recoverable amount

    • AASB 13/ IFRS 13 Fair Value Measurement

    • AASB 102/ IAS 2 Inventories

    • AASB 116 Property, Plant & Equipment/ IAS 16 Presentation of Financial Statements

    • AASB 136 / IAS 36 Impairment of Assets

^Source: Valuing Machinery and Equipment: The Fundamentals of Appraising Machinery and Technical Assets. Third Edition American Society of Appraisers  


SCE Group has engaged O’Maras on several occasions to provide a valuation report for management & financial reporting purposes. We have received timely, well researched reports enabling our management team to make key business decisions.  

O’Maras worked with senior management to establish a project brief, gain a full understanding of operations & use of the report to define project plan. Further maintaining communication throughout the project to ensure there was a mutual understanding of progress in line with client requirements.

An experienced project manager, liaised with site management and designated contact persons to establish convenient times to inspect fleet to minimise business disruption whilst meeting the agreed timeline for valuation report delivery.

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