Methodology

Our approach is flexible, depending on our clients’ specific needs. What remains constant is the confidence that our services comply with all relevant international and Australian standards, while bringing practical benefits to support long-term planning.

For some clients, a traditional straight-line methodology is appropriate for calculating depreciation expense as part of valuations. However, to provide greater accuracy and relevance, APV has been at the forefront of developing more sophisticated and accurate depreciation models that take into account all the requirements of the Accounting Standards and are based on the asset management reality.

This includes further enhancements to the Advanced SLAM Consumption Based Depreciation methodology, which measures how long assets will perform the role they are intended for – and their expected condition at different phases during their lifecycle. This information is used to calculate depreciation expense and provides real insights to support planning and asset management.

This methodology:

• determines an asset’s remaining service potential
• is consistent with engineering assessments and asset management frameworks
• separates complex assets into appropriate components, with specific valuations and depreciation rates
• is supported by sufficient and appropriate documented audit evidence.