Research On The Mechanical And Electrical Equipment Evaluation Based On The Replacement Cost Approach

With the development of market economy, more and more enterprises and individuals show the needs for assets appraisal. Doing a good job in the evaluation of assets is of great significance to the circulation of social resource, the standardization of market price system and the healthy and rapid development of the economy. Mechanical and electrical equipment valuation accounts for a large proportion in the entire assets appraisal industry and requires professionalism so that the perfect valuation of this type of assets means a lot for improving the credibility and service quality in the whole industry. However, a scientific and reasonable theoretical system for mechanical and electrical equipment evaluation has not been formed. Hence the assessment results could not show the present situation of the evaluated objects accurately and it might be difficult to gain the trust of the clients.In practice, the replacement cost method is commonly used for assessing the value of mechanical and electrical equipment. On the basis of evaluation practice and relative theories, the thesis explores the calculation base for the three kinds of evaluation, the practical depreciation rate, the audit and identification of the asset appraisal reports in mechanical and electrical equipment evaluation. Firstly, this thesis makes a brief evaluation about the the advantages, disadvantages and applicability of the four basic methods and chooses the replacement cost approach as the preferred method. After a summary of the steps and contents of the field identification in mechanical and electrical equipment evaluation, the calculation bases and specific forms of the formula in different replacement costs are summarized based on the essence of replacement cost approach and the characteristics of the three depreciation. Then the calculation of physical depreciation is explored. Among the factors affecting the physical depreciation, the influences of the actual service life and the technical status of each part of the devices on physical depreciation are chosen to be the basic depreciation rate, while comprehensive adjustment coefficient is used for showing the effects of other factors. Physical depreciation rate is calculated by multiplying the two figures above together. Finally, in order to improve the efficiency and quality of the audit and identification work, a general process for auditing and identifying is concluded according to evaluation practices and the research findings in some relevant fields. The scientificalness and practicability of the above conclusions are verified by practical cases in assets appraisal.