ASA releases 4th edition of “Valuing Machinery and Equipment” textbook

Today, after a number of years of work, the American Society of Appraisers Machinery & Technical Specialties Committee officially released the new edition of Valuing Machinery and Equipment: The Fundamentals of Appraising Machinery and Technical Assets, the authoritative textbook on the theory and methodology of appraising machinery, equipment, and technical assets.

I was privileged to serve as an editor of the textbook with my co-editor, Jamie Allen, an Executive Vice President with Newmark Valuation & Advisory. The book includes contributions from dozens of equipment appraisers and subject matter experts. We also were lucky enough to have the help of Jo Crescent of NorCal Valuation, who was perfectly suited to help with the combination of her experience as an equipment appraiser and her journalism background including many years as a newspaper editor.

The textbook was originally published in 2000 and was updated in 2005 and 2011. The new 2020 edition includes updated and revised chapters on topics like the sales comparison approach, appraisal report writing, and valuations for financial reporting. Some chapters, such as the one on aircraft appraisals, have been completely rewritten, and the book also includes a new chapter on ad valorem tax appraisals. We spent significant time to completely rewrite and improve the glossary of terms, engaged the services of a professional indexer to create a comprehensive index, and updated many of the appendices, including providing a newly compiled list of sources for appraisal pricing and equipment data.

The charge of ASA‘s Machinery & Technical Specialties Committee was to provide a comprehensive textbook that would include current information and best practices in the appraisal profession and to continue the textbook’s reputation as the authoritative source on the theory and methodology of appraising machinery, equipment, and technical assets.

I thank everyone associated with the textbook and all the contributors who spent countless hours on it. I hope we met the goals of the Machinery & Technical Specialties Committee with this fourth edition.

Textbook chapters include:

1. Introduction
2. Classification and Description of Machinery and Equipment
3. Cost Approach
4. Sales Comparison Approach
5. Income Approach
6. The Three Approaches to Value for a Process Plant
7. Appraising Assets in Groups
8. Report Writing
9. Valuations for Financial Reporting Purposes
10. Ethics
11. Leasing
12. Inventory
13. Marine Assets
14. Aircraft
15. Use of Technology
16. Technical Specialties
17. Cost Segregation Studies
18. International Machinery and Equipment Valuations
19. Ad Valorem Tax: Personal Property

Appendices include:

1. Accounting Depreciation
2. Compound Interest
3. Financial Tables
4. Quick Reference Tables and Conversion Factors
5. Useful Information: Measurements and Estimation
6. Licensing of MTS Appraisers
7. Pricing and Equipment Data Sources
8. Sources of Information and Recommended Readings
9. Valuation Process for Financial Reporting

The Fourth Edition is available as an electronic PDF or as a combo set that includes the PDF and a hardbound printed edition. Both options are available through ASA’s store at https://www.appraisers.org/shop/publications-and-subscriptions/books/valuing-machinery-and-equipment.