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New IFRS Requiring Companies to Define Residuals on IT Equipment
The International Financial Reporting Standards (IFRS) is currently being adopted by more than 12,000 companies in nearly 100 countries outside the United States. The IFRS are the less-detailed financial reporting rules developed by the London-based International Accounting Standards Board (IASB). The IFRS are now in use for domestic listed companies in over 115 countries worldwide in the European Union. Canada, the largest U.S. trading partner, is adopting IFRS in 2011, followed closely by Mexico with a 2012 adoption date. The SEC is considering measures that could lead to retiring U.S. GAAP and adopting IFRS in the United States. The effects of global reporting standards on US companies will accelerate over the next few years, regardless of how the SEC proceeds. DMC Valuations Group has over 25 years in providing fair market values and decline rate schedules for IT equipment. DMC has developed a Valuation report that fits the requirements for the new IFRS guidelines for determining “useful lives” of IT equipment. The report identifies and reports on the decline schedules of the following IT asset classifications:
Desktop equipment
Laptop (notebooks) and tablet equipment
Servers, both low to midrange and high end to mainframes
Printers – desktop and high volume
Network communications – low end hubs and routers,
appliances and high end
Disk Subsystems
Tape Subsystems
UPS Systems – low end and high end systems
Copiers – multifunction low end and high end printers and scanners
The report identifies the methodologies used and provides examples of how the decline rates were determined for these classifications.
It is important to get a head start on the new IFRS rules and the DMC report will assist you in your identification of IT asset decline rates.
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New IFRS Requiring Companies to Define Residuals on IT Equipment
The International Financial Reporting Standards (IFRS) is currently being adopted by more than 12,000 companies in nearly 100 countries outside the United States. The IFRS are the less-detailed financial reporting rules developed by the London-based International Accounting Standards Board (IASB). The IFRS are now in use for domestic listed companies in over 115 countries worldwide in the European Union. Canada, the largest U.S. trading partner, is adopting IFRS in 2011, followed closely by Mexico with a 2012 adoption date. The SEC is considering measures that could lead to retiring U.S. GAAP and adopting IFRS in the United States. The effects of global reporting standards on US companies will accelerate over the next few years, regardless of how the SEC proceeds. DMC Valuations Group has over 25 years in providing fair market values and decline rate schedules for IT equipment. DMC has developed a Valuation report that fits the requirements for the new IFRS guidelines for determining “useful lives” of IT equipment. The report identifies and reports on the decline schedules of the following IT asset classifications...
Calculating the Economic Useful Life and Forecasting Residual Values for IT Equipment
The economic useful life of computer assets is generally considered to be five years for almost all categories of equipment. This report explains the calculation of economic useful life, using the example of a Dell server and a Cisco Switch. The same analysis applied to different categories of equipment would show that the economic life is different for almost every category of equipment, whether mainframes, disk, laptops, desktops, servers, and communications equipment. The use of Fair Market Value Reports will report on the values of equipment over various time frames until the equipment reaches salvage. When these values are plotted over time it will represent the decline rate of the equipment and will reveal the Economic Useful Life of the asset.
IT Vendor Discounts 1Q10
IT vendor discounts are incentives that the seller uses to give customers a cost advantage based on the customer’s purchase of multiple units, exceeding a certain order size threshold, or other criteria. Because the largest and best discounts often require customers to sign non-disclosure agreements, buyers may find it difficult to determine whether the discount offered is
typical or whether a better deal can be negotiated. The IT Vendor Discounts Report is designed, therefore, to give procurement personnel and IT managers insight and guidance regarding current discount structures on a variety of categories of equipment
in the marketplace. This report will be maintained periodically as discount structures change.
All Three FMV Reports
Fair Market Value (FMV) is defined as the estimated amount, expressed in terms of money, that may reasonably be expected for the equipment, in exchange, between a willing buyer and a willing seller, neither under any compulsion to buy or sell, with both parties reasonably cognizant of all relevant facts and circumstances. Orderly Liquidation Value (OLV) 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, with the seller being compelled to sell on an as-is where-is basis, as of a specific date. No freight, installation or software charges are included in the values quoted for the equipment.
Price analyses are presented in Acrobat PDF file.
Click here to purchase. - $225 (USD)
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Appraisal Services
- Information Technology
- Medical Equipment
- Material Handling
- Telecomm
- Test Equipment
Valuations
- Fair Market Value Installed
- Wholesale
- Orderly Liquidation Value
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