Equipment wear table. Direct and indirect methods for assessing physical wear and tear of equipment

Types of cost

Market value is the most probable price at which the valuation object can be alienated for open market in a competitive environment, when the parties to a transaction act reasonably, having all the necessary information, and the value of the transaction price is not affected by any extraordinary circumstances.

Market value is determined in cases where:

a transaction for the alienation of the valuation object is assumed, including when determining the redemption price, when withdrawing the valuation object in the absence of state regulated prices, or for state needs;

when determining the value of the company's placed shares acquired by the company by decision general meeting shareholders or by decision of the board of directors ( supervisory board) society;

the object of assessment is the object of collateral, including in the case of a mortgage;

when making non-monetary contributions to the authorized (share) capital, when determining the value of property received free of charge;

when determining the cost securities, which either do not circulate at auctions of trade organizers on the securities market, or are traded at auctions of trade organizers on the securities market for less than six months;

when deciding on the initial sale price of property in bankruptcy proceedings.

Investment value is the value of a property to a particular investor or class of investors for stated investment purposes. This subjective concept relates a specific property to a specific investor, group of investors or organization that has specific investment goals and/or criteria. The investment value of the appraisal object may be higher or lower than the market value of this appraisal object.

Investment value is determined in the following cases:

if a transaction is expected to be completed with the object of evaluation in the presence of a single counterparty;

if the object of assessment is considered as a contribution to the investment project;

when justifying or analyzing investment projects;

when implementing measures to reorganize the enterprise.

Liquidation value is the most probable price at which the subject property can be alienated in a period insufficient to attract a sufficient number of potential buyers, or in conditions where the seller is forced to make a transaction to alienate the property.

Utilization value is the most probable price at which an object of assessment can be alienated as a set of elements and materials contained in it if it is impossible to continue its use without additional repairs and improvements.

Replacement cost (reproduction and replacement cost) is the sum of costs in market prices existing on the date of valuation, to create an object identical to the valuation object, using identical materials and technologies, or to create an object similar to the valuation object, using those existing on the date conducting assessment of materials and technologies.

Replacement cost is determined:

when calculating the tax base for income tax and property tax;

for purposes tax accounting when making a fixed asset as a contribution to the authorized capital;

when revaluing fixed assets for purposes accounting;

within the framework of the cost approach when assessing property.

Replacement cost can be determined when insuring property.

Special value is a value additional to market value that may arise due to the physical, functional or economic connection of a property with some other property. Special value represents an additional value that may exist to a greater extent for a buyer with a special interest than for the market as a whole.

Under reliability equipment understand full compliance with its technological purpose within the specified operating parameters.

The running-in period is characterized by an increased wear rate, gradually decreasing over time. The friction conditions of the pair gradually change, as a new relief, characteristic of specific loading conditions, is formed on the surface of the rubbing bodies and structural changes in the materials occur.

Performance- Performance is the state of a product in which it is capable of performing a given function with the parameters established by the requirements of technical documentation. Failure is a malfunction. The property of an element or system to continuously maintain operability under certain operating conditions (until the first failure) is called reliability. Reliability is the property of an object to continuously maintain an operational state for some time or operating time. Performance is the potential ability of an individual to perform appropriate activities at a given level of efficiency for a certain time. Performance depends on the external conditions of activity and the psychophysiological resources of the individual.

DURABILITY - 1) the property of a technical object to retain (subject to maintenance and repairs) operable condition for a certain time or until a certain amount of work is completed. Durability is characterized by technical resource or service life.

2) Durability in construction - the service life of a building or structure.

Wear and tear of technological equipment

In many situations, the appraiser faces the practical task of determining the residual value of an object, that is, determining the value of an object taking into account its depreciation on a specific date. Taking wear into account means estimating it. To evaluate wear, it is necessary to consider the wear process from a technical and economic point of view. From a technical point of view, wear and tear expresses the deterioration of the operational characteristics of an object, from an economic point of view - the loss of value of an object during its operation.

Loss of value of an object can occur for various reasons:

If the value has decreased due to the aging of the object being valued or the partial loss of its functionality, then we speak of physical wear and tear;

If the value of the appraised object has decreased due to loss of competitiveness or decreased demand in the market, then this is obsolescence or functional obsolescence;

If the value of the valuation object has decreased due to reduced demand or increased competition in the market, increased prices for raw materials or labor, high interest rates, inflation, changes in the regulatory framework, etc. (that is, due to conditions beyond the control of the enterprise), then this process is usually called external wear and tear or economic obsolescence.

Reduced reliability and decreased durability of equipment are caused by deterioration of its condition as a result of physical or moral wear and tear.

Under physical wear and tear one should understand the change in shape, size, integrity and physical and mechanical properties of parts and assemblies, established visually or by measurements.

Obsolescence equipment is determined by the degree to which its technical and design purposes lag behind the level of advanced technology (low productivity, quality of products, efficiency, etc.).

Corrosion-mechanical wear occurs as a result of mechanical impact on rubbing surfaces.

This type of wear is caused primarily by a chemical reaction of the friction surface material with oxygen or an oxidizing environment. Corrosion of a metal in a given environment can occur regardless of whether there is friction or not. The combined effect of corrosion, loading and mechanical wear increases the intensity of destruction of the surfaces of parts. The process of corrosion-mechanical wear itself is mainly caused by the electrochemical corrosion process. Electrochemical processes are significantly accelerated when the surface layer is deformed. Under friction conditions, corrosion processes accelerate thousands of times.

Abrasive wear – This is the destruction of the surface of a part as a result of its interaction with solid particles (abrasive). An abrasive material is a material of natural or artificial origin, the grains of which are sufficiently hard and have the ability to cut (scratch).

Such particles can be microprotrusions, solid soil particles, metal shavings, sand, oxide film, carbon deposits, wear products, etc., caught in the force contact zone of mating surfaces. Solid particles can be either in a fixed state (fixed solid grains) or in a free state.

The causes of wear and tear lie in the property being assessed and in its immediate surroundings, as well as in areas not directly related to the property being assessed.

The degree of wear and tear is expressed as a fraction or percentage of the original (reproduction cost) or replacement cost.

In economic terms, depending on the reason that caused the depreciation of machinery and equipment, three types of wear and tear are distinguished:

Physical;

Functional (moral);

Economic (external).

Physical wear and tear- loss of value due to deterioration in the performance of the machine (valued object) due to its natural wear and tear during operation or long-term storage;

Functional wear- loss of value of the machine (the object of assessment) as a result of the use of new technologies and materials in the production of similar equipment and an increase in costs during its operation;

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External (economic) wear and tear- loss of value of a machine (object of valuation), caused by the influence of factors external to it (demand, competition, legal restrictions, etc.).

Depreciation and amortization

Thus, one of the main factors causing a decrease in the reliability of machines over time is their wear. Wear is a technical and economic concept that reflects, on the one hand, a decrease in the level of consumer properties of a machine and a decrease in its performance, and on the other hand, a corresponding decrease in the value of the machine as an object of evaluation corresponding to these processes.

Depreciation in accounting is the process of allocating the initial costs associated with purchasing a machine over its useful life. It is obvious that the calculation of depreciation, no matter how it is carried out, is not an assessment procedure. The residual value, which is determined by taking into account depreciation, is not a market value, since it does not take into account the condition of the machine, its usefulness and possible lag behind the level of modern machines of the same functional purpose. This is the accounting residual value of the machine.

When using profitable The approach generally does not require special accounting for any type of wear and tear, since the influence of each of them will manifest itself in the amount of income generated by the object of assessment. Obviously, the greater each of the depreciations, the less will be the amount of income and, accordingly, the value of the valued object.

When using comparative approach determination of physical wear and tear is often required to adjust the prices of close analogues by degree of wear. At the same time, functional and external economic depreciation can be taken into account indirectly, through the prices of close analogues or identical objects (weighted on market scales).

Only when using expensive approach process of determining cost ( WITH ) of the valuation object comes down to determining the full cost of reproduction ( Svs ) subsequent accounting for impairment due to all three types of depreciation. The importance of taking into account all three types of wear when assessing machinery and equipment is due to the following reasons:

Relatively short (compared to other assets) standard service life of most machines, which indicates the significant impact of physical wear and tear on their value;

The high dynamics of the emergence of new technologies, materials and machine designs, contributing to their relatively rapid functional wear;

Relatively rapid changes in demand for many types of products produced technological equipment, as well as competition between these products and foreign goods, which in some cases leads to external (economic) wear and tear of this equipment.

12. As a result of physical wear and tear:

Are getting worse technical specifications object and operational characteristics;

The likelihood of breakdowns and accidents increases;

The residual service life of the object as a whole or some of its components and parts is reduced.

When assessing machinery and equipment, determining and accounting for wear and tear is necessary due to its significant impact on the value of the objects being assessed. Typically, wear and tear of a machine, primarily physical, leads to a deterioration in technical performance, which inevitably affects its value. In general, the cost ( WITH ) and the physical wear and tear of the machine are related by a simple relationship:

Removable wear- This is wear and tear, the cost of eliminating which is less than the value added.

Unrecoverable wear - This is wear and tear that costs more to eliminate than the value it adds.

The way to eliminate physical wear and tear is to repair equipment, and functional wear and tear is to modernize it.

Elimination of economic (external) wear and tear can be the relocation of the object to another economic environment.

Indirect methods for determining physical wear and tear are based on inspection of objects and study of their operating conditions, data on repairs and cash investments to keep them in working order. The following indirect methods for determining the physical wear and tear of machinery, equipment and vehicles:

1) effective age method (lifespan method);

2) expert analysis physical condition;

3) method of loss of profitability;

4) performance loss method.

Effective age method (lifetime method) This is the most common method for determining physical wear, along with the method of expert analysis of physical condition.

As already stated above, real terms the service of machines, equipment, vehicles may differ from the standard due to various factors: intensity of work and operating mode, quality and frequency of maintenance and repair, environmental conditions, etc.

Ve = Vee - Vo

Effective age (V e) - the difference between the service life and the remaining service life (or the amount of operating time of the object over the past years).

Service life(economic life span, In ss) - the period of time from the date of installation to the date of withdrawal of the object from operation (or the full operating life).

Remaining service life (B 0) - the estimated number of years until the facility is withdrawn from service (or the estimated remaining operating time). Formula for calculating the physical wear rate:

K physical =1-(Х/Х 0) b, (11)

K physical - coefficient of physical wear and tear

Х,Х 0 – percentage value of the diagnostic parameter on the date of assessment and on the date of commissioning;

b – braking coefficient is equivalent to the indicator of the degree of influence of efficiency on cost

Physical wear and tear is a loss of value caused by natural wear and tear during operation and various natural environmental influences.

Thus, physical depreciation (PH) is simply the wear and tear of an asset due to its use. The reasons for the occurrence of FI are related to the object itself and the environment in which it is operated. Factors that require study when calculating FI:

• degree of natural wear (aging ) during operation – age of maintenance;
• level of exposure to natural (climatic ) factors or surrounding production environment – dustiness, humidity, gas contamination, etc.;
• intensity of equipment operation – shift coefficient;
• quality of content, regularity And maintenance efficiency – compliance with the schedule for current and major repairs.

Generally, physical wear and tear is measured as a percentage; a new asset has 0 depreciation, while a fully used asset has 100%.

Physical deterioration is determined by analyzing all plant data, which includes: direct comparisons with modern machines, the use of accumulated experience of maintenance personnel, physical inspection of existing plants, analysis of material and technical maintenance costs, forecasting the profitability of the use of this equipment and the expected economic life.

Excessive wear often reduces tolerances production equipment, which leads to a significant increase in defects and, ultimately, failure to meet accepted production standards. This may subsequently require large operating and repair costs, significantly higher than the average for similar equipment.

Theoretically, physical wear and tear would seem to be measurable objectively. A machine will produce a certain number of units of output over its entire physical life. Assuming that the relevant statistics are available, that the machine has never been rebuilt or misused, and that all such assets operate in the same way, then the simple ratio of output produced to total expected output will provide an objective measure of physical wear and tear. It is obvious that the machines are modified, sometimes used in violation of operating rules, and their quality differs. Unless you are working with large assets, production statistics are not maintained for individual assets. Therefore, in reality, measuring the amount of physical deterioration is subjective, since the appraiser must determine for himself how similar the operating conditions of the assets were in the past in order to make a conclusion about the physical condition of the appraised object.

It is possible to determine the amount of direct costs that would be required to repair or remodel the property to like new condition. These costs are also called “remediation costs.” Unfortunately, the physical wear and tear of most machines currently produced cannot be completely eliminated, so a part called "fatal wear" is usually isolated.

The appraiser must rely on the facts relating to the property in question, particularly its age and use. For example, the physical wear and tear on a slide rule still in its case, shrink-wrapped and never used is zero percent. At the same time, it is 100% functionally and economically obsolete for the purposes for which it was designed and manufactured.

Operating mode – one of the most important indicators of physical wear and tear. Equipment operating 24 hours a day wears out faster than the same equipment operating 8 hours a day. Equipment that is operated in a dusty, dirty, abrasive and/or corrosive atmosphere will wear out faster than equipment that is operated in a clean environment. Cars that have just undergone a major overhaul are in better physical condition than those that require repairs.

When an asset such as a machine is rebuilt, its degree of physical deterioration is only partially corrected because the rebuilt machine is still not new and has some signs of physical deterioration (fatal) that cannot be corrected. This difference can be measured by comparing the selling price of a new piece of equipment and a factory refurbished machine.

Although there may be different opinions regarding the condition of the same object, ultimately the measure of physical wear and tear is determined by comparing the condition of the assessed object with a similar new one.

All the above considerations and ideas underlie the methods for calculating physical wear and tear. The possibility of its objective measurement using such methods is very conditional. Most methods are of an expert-analytical nature, i.e. is based on expert opinion, and, therefore, these methods are not without subjectivity.

The following methods for measuring physical wear are known:

• observation (examination) of the condition;
• effective age;
• direct monetary measurement;
• element-by-element calculation;
• decrease in profitability;
• reduction in consumer properties;
• stages of the repair cycle.

Condition observation method

Observation state is a comparison procedure, comparing the state of the assets being valued with a similar new asset.

This procedure involves actually identifying visually identifiable service wear items and converting the observations into percentages. It also includes consultation with qualified plant personnel regarding aspects of the physical condition of equipment that are not readily apparent, such as internal corrosion of tanks. Based on the factual data obtained, the appraiser must draw up a conclusion and express it as a percentage adjustment deducted from the reproduction/replacement cost.

Observation also means the physical inspection of a property to determine (predict) its remaining life.

Observation also involves studying the operating history of the object being assessed and talking with engineers and maintenance personnel.

Service life (average economic life ) (Average life ) – The average or usual expected economic life (life) of a property while it produces income for its owner.

Estimated remaining life (Estimated remaining life ) is the period, expressed in years, during which assets or groups of assets are expected to remain in use.

State – a characteristic that can only be determined by observation.

The appraiser must clearly agree with the client on the definition of different types of condition. It makes sense to include definitions of different types of condition in the descriptive part of the contract for the valuation of plant and equipment each time in order to avoid their different interpretation. A description of the definitions of the various types of condition should also be included in the assessment report. Below is a suggested set of definitions.

Let's consider the main types of condition.

Very good (OH). Describes a piece of equipment in excellent condition, fit for use for its intended purpose and design, and not requiring modification or repair or unusual maintenance as of the date of inspection or in the near future.

Good (X). The condition of such items of equipment that have been altered or repaired and are in full or nearly full use full compliance with your specifications.

Satisfactory (U). The condition of those items of equipment that are used below their full specification as a result of the effects of age and/or use and require maintenance general repairs and replacing some minor items in the near future to improve the level of use to or around its original specification.

Bad (P). The condition of such pieces of equipment that can only be used to a significantly reduced extent compared to their full specification and cannot be used to their full capacity in their current condition without undergoing significant repairs and/or replacement of major items in the near future.

Scrap condition (L). The condition of those pieces of equipment that are no longer capable of practical service or operation, regardless of repairs or modifications to which they may have been subjected. This definition applies to items of equipment that have reached 100% of their useful life or are 100% technologically or functionally obsolete.

Table data 5.2 can be used to establish the relationship between physical deterioration, condition and remaining service life.

Table 5.2

Wear reference table

	State	Remaining service life, %
	New
	New, installed and unused unit in excellent condition
	Very good
	Like new, only slightly used and no parts or repairs required
	good
	Used property but renovated or updated and in excellent condition
	Satisfactory
	Used property that requires some repairs or replacement of some parts such as bearings
	Usable
	Used property in working order requiring significant repairs or replacement of some parts such as motors or necessary parts
	Bad
	Used property requiring major repairs, such as replacement of moving parts or major structural elements
	Not for sale or scrap
	There is no real prospect of being sold, except for scrap, i.e. cost of disposal of the main content of the material

Age - a factor that to some extent determines the wear and tear of a machine, since part of its useful life has already been used.

This is reflected in a reduction in the present value of the future benefits to be received from owning the property. It is reasonable to assume that a machine or piece of equipment will have its highest appraised value when it is new, unused, installed and ready to go.

However, age cannot be considered as the only factor in calculating depreciation. dilapidation defined as deterioration.

Deterioration resulting from use and other factors reflects the loss in value caused by physical wear and tear. Obviously, condition is a factor that must be taken into account when assessing wear and tear for grading purposes. Moreover, the remaining useful life directly depends on the condition. To establish a connection between qualitative and quantitative characteristics - between a descriptively specified condition, the percentage of wear and tear and the remaining useful life of an object - the appraiser can use the table. 5.2. The use of clear definitions of various conditions (see above) will reduce the role of subjective factors in determining wear.

The condition observation (examination) method involves the involvement of specialists servicing maintenance facilities to assess the physical condition of machines and equipment in accordance with the rating scale contained in Table. 5.2.

Effective age method

The physical condition of an object can also be assessed by the following simple relationship:

For given units of measurement, this coefficient shows degree of use of the asset to date in relation to its total expected life (full depletion). For example, suppose the normal physical life of a machine is 100,000 hours. If a particular machine has already been in service for 40,000 hours, it would be logical to conclude that the physical wear and tear is approximately 40% (40,000/100,000 100%). If we are talking about a new asset, then its total service life is equal to its expected service life, which is in this example is 100,000 hours.

Thus, the essence of this method comes down to analyzing the “Age/Service Life” relationship. In the numerator of this formula we should consider effective age (Effective age ), because if valid age (or chronological ) is defined as the number of years that have passed since the creation of the asset, then effective age reflects the amount of operating time of an asset over the past years of its operation. For example, a machine that has recently been rebuilt with many parts replaced with new ones and has a chronological age of 20 years will have an effective age that is slightly lower because the machine is in better condition due to the overhaul. The denominator in this formula reflects the entire the expected economic life of the asset.

The disadvantage of these conclusions is that this is an example linear depreciation, the accumulation process of which, as is known, is nonlinear.

To some extent, this drawback can be eliminated by considering the following three qualitatively various situations, for which the service life (denominator) can have three different calculation methods depending on the age and operating conditions of the asset:

standard service life, – number of years this asset will last plus expected remaining life ()

Determining the effective age (numerator) for each of the three situations above is based on an analysis of the condition of the property, the number of years it has been in use, and the remaining useful life of the property. at the moment time. Typically, during the first few years of a property's life, its effective age and chronological age are the same (or nearly so) ().

However, as an asset continues to be used, its effective age gradually changes depending on the intensity of use of the property, its physical environment, the quality of its maintenance and other similar factors. Effective age serves as an indicator to help estimate the future usefulness of assets ().

For example, a piece of equipment whose chronological age is years may have a standard service life, but its remaining service life T ost can be estimated at 6 years, which means her effective age is a year. This is considered to be the result of very good logistics, poor utilization, or both.

Let's look at examples of using the effective age method for the three situations described above.

Example 5.3. Let the asset be one year and its standard service life be 20 years, then

Example 5.4. The equipment is 9 years old, the standard service life is 12 years, from a conversation with the service personnel the appraiser concludes that the remaining service life of the equipment is 5 years, then

Example 5.5. The standard service life of equipment is 12 years, chronological age is 15 years, while the remaining life is 2 years, then

In the latter case, the total output (denominator) is calculated as the sum of the hours (years) already worked to date plus the remaining useful life, expressed in hours (years). If the expected service life of the machine is 100,000 hours, it has exhausted them and is expected to work for another 25,000 hours, then FI = 80%, obtained as follows:

Thus, the method under consideration is to analyze the Age/Life relationship, using the standard life and effective age of the object being valued to obtain a value, expressed as a percentage, indicating how much of its economic life has already been consumed.

It is believed that this method can be used to measure irremovable physical wear and tear, which is usually expressed as a percentage of replacement cost:

where is the effective age; – length of remaining useful life.

In reality, the useful life expectancy () of even a single machine can vary greatly.

By definition economic life Maintenance is the period of time (or service) from the date of its installation to the date of removal of the machine from service.

However, the useful life of an asset can be affected by many circumstances. They include the following:

• how often the machine is used;
• what was the age of the car at the time of its purchase;
• how often it was repaired, or updated, or its parts were replaced;
• in what climate it was operated.

Useful life may also be affected by technological improvements, technological progress, reasonably foreseeable economic changes, moving business centers, prohibitory laws and other reasons. All this must be taken into account before determining the expected useful life of the machine.

The useful life for the same type of machine may vary depending on the user. The calculation of the useful life of a machine must be based on an analysis of the specific current conditions existing in the plant in which it is used.

The advantage of using the Age/Life method is that the effective age can often be calculated from the fixed assets recorded in the client's financial records. The problem with using this method is hidden in estimating the remaining physical life of the asset. If some physical factors are known that can limit physical life, then an investigation should be carried out.

Although the Age/Life method is described here to calculate physical deterioration, it can also be used to estimate other elements of deterioration if the necessary information is available. For example, let's say you estimate the treatment plant and existing assets are five years old and have a remaining physical life of fifteen years. In this case, physical wear and tear will be 25% (5/20 100%). Let's further assume that a law has been issued requiring owners to replace their existing equipment with something more environmentally friendly within the next three years. Since the remaining economic life due to the new legislation is three years, the total depreciation (physical, functional and economic) will be 62.5%, i.e.

Once again, this concept must be used in light of the facts and circumstances that affect the object being assessed.

In the broadest sense, using this technique, we are dealing with straightforward depreciation method. With the help of analysis, the place of the evaluated object at a specific moment is determined. life cycle. When making adjustments taking into account existing conditions in the past and future, as well as its current state, such analysis becomes an important tool in the assessment process.

The Age/Life Method is most useful for assets that are new or have served less than half their total service life.

When an item requires significant costs to correct its physical condition, or when any of its components that have a short remaining life need to be replaced, it is appropriate for the estimator to use this information in calculating avoidable physical deterioration using the method described below.

Direct monetary measurement method

It is assumed that physical wear and tear will be measured in monetary units. The method is used when individual elements are worn out and can be replaced. This type of wear is called removable wear. For machinery and equipment, this means replacing major components or incurring renovation costs. Examples include replacing an engine, sandblasting and painting process tanks, or upgrading machine tools.

The method consists of calculating the amount of money that would be required to eliminate wear and tear and return the asset to a new condition. In most cases it is not economically feasible or physically possible to eliminate all wear, but some of it can be calculated using this method.

For example, you inspected a car and determined that it could be restored to a new condition, provided that certain manipulations were done to it. During your inspection, you discover that the machine has a bearing that is almost completely worn out. You will also notice that the car is showing some signs of corrosion in areas where the paint has peeled off. Finally, you discover that the tool holder is very worn and needs to be replaced. Provided that the parts are repaired or replaced, the machine will not be distinguishable from new. As a result of your research, you determined the repair costs as follows:

Bearing replacement $250

Replacement of tool holder $100.

Stripping and painting $150.

Total $500

The cost of a new car, the same as the one being appraised, is $3,500.

To determine the amount of removable physical wear and tear as a percentage, the cost of eliminating it is divided by the cost of a new machine. Removable physical wear and tear, %, will be

The direct method of calculating wear is applicable in cases where the cost (C) of new maintenance and the costs (3) that must be incurred in order to bring a worn-out object to a new state are known. In this case, wear is found from the expression

When using this method, the appraiser must be able to separate the types of wear that can be repaired from the types that cannot be repaired. The main difference between these two types of wear and tear is that one of them can be eliminated through economic means, while the other cannot. By separating these wear and tear elements, we analyze the asset being valued from two perspectives. The removable portion of wear and tear can be assessed directly in monetary units, but depreciation for non-removable elements must be calculated by condition observation or using age/life analysis. The sum of removable and irreparable wear is total physical deterioration of an existing asset.

When determining avoidable physical wear and tear, the main sources of information are capital cost data, both historical and planned, production documentation, and consultation with technical personnel. Based on historical capital expenditure data, the appraiser learns how much money was invested in a particular asset. An appraiser may discover that an additional amount has recently been spent on an asset and conclude that the asset is now in relatively good condition. If little money has been spent on an asset, this may indicate that the asset is in need of major repairs. When analyzing future planned capital expenditures, the appraiser can find out which assets the planned expenditures relate to. The analysis may show that an asset is nearing the end of its useful life (and may also reveal functional or economic problems). Studying production documentation will allow you to find out how certain assets were used. Decreased performance will indicate physical problems. If performance levels remain high over a long period of time, this may indicate increased physical wear and tear due to usage, leading to a shortened asset life or the need for major repairs.

After studying the documentation, it is worth discussing the condition of the equipment with various specialists from the maintenance and technical personnel. It is extremely difficult, if not impossible, for an appraiser, or any outsider, to determine the condition of equipment without consulting those who work on or maintain the equipment every day. From such conversations, the appraiser must extract useful information, which ultimately forms additional information on the basis of which a conclusion is made.

If a business is planning a complete replacement of equipment, this may be due to its current physical condition or to solve some functional or economic problems associated with it. In the latter case, we are dealing with types of wear and tear other than physical, affecting the asset being valued.

Element-by-element calculation method

This method is a generalization of the effective age method and is used to determine the effective age of a multi-element asset or group of assets by weighing investments in this asset by their value. Weighing must be carried out on a fair basis and take into account the quality weighting coefficients the volumes of funds invested or withdrawn during the life of a given asset. The procedure can be applied both to one component asset (if the records are sufficiently detailed) and to a group of assets, which is most common.

Example 5.6. Determine the weighted average effective age of the processing plant.

The problem is to calculate the effective age of an asset valued in 2012. There are data on initial costs and acquisition dates. As a result of the research, it turns out that the property was purchased in 2003 and additional investments were made in 2006 and 2008. A major overhaul was carried out in 2011, as a result of which some of the original equipment was replaced.

The first step is to create a basis for comparison, which in this case will be represented by indexed initial cost. It is found using the corresponding cost index to the initial cost for each year (Table 5.3).

Table 5.3

Determination of indexed cost

The original cost of $42,000 and indexed cost of $81,100 may be misleading because they include excess costs associated with major renovations in 2011. In other words, these costs double on those assets that were replaced during the 2011 renovation. d. For example, if a pump was replaced in 2011, the cost of the pump was likely counted twice: first in 2003 at the initial investment and again in 2011. To make adjustments, the incremental (or excess) investment must be subtracted. For example, 2011 costs are reduced to 2003 dollar amounts through “reverse indexation,” i.e.

The initial costs and indexed initial costs are revised and the excess investment is subtracted, after which the new values ​​are obtained in the table. 5.4.

The next step is to determine the age of the investment. This is done by multiplying the indexed initial cost by the age of the investment (Table 5.5).

Table 5.4

Original and indexed cost

Table 5.5

Determination of the weighted investment amount

The last step is definition weighted effective age by dividing the weighted investment by the indexed cost, i.e.

Let us now assume that the standard service life of a given multi-element asset is 25 years, then its total physical depreciation can be calculated using the already found weighted effective age as follows:

As noted, the advantage of using the effective age method is that the effective age of an asset can be reasonably calculated, assuming that the client's financial documentation is provided.

The problem with using this method is estimating the remaining physical life of the asset (). When valuing a multi-element asset or group of assets, it is more difficult for the appraiser to predict the future. Let's look at how this problem is solved.

Example 5.7. Determine the (weighted average) remaining service life of the process furnace.

A process furnace operating continuously, 24 hours a day, seven days a week, is evaluated. From consultations with maintenance personnel, you learned that the furnace has been working properly since installation for about 12 years. During the consultation, you also found out that the hog chimney was hot repaired approximately 5 years ago, and some pumps, pipes and other peripheral equipment were replaced about two years ago. In addition, you have determined that the fireproof masonry will need to be replaced in approximately 5 years.

Let's assume that you calculated the effective age similarly to example 5.6 and it was 8 years.

The next step is to estimate the composite (weighted) remaining life of the furnace as a whole. During subsequent consultations, you find that after replacing the refractories, the furnace can operate for another 15 years, so that the remaining service life of the structural elements is 20 years. As for the rest of the equipment, it is currently in relatively good condition, but technical and management personnel do not expect it to last as long as the main structural components. The management of the enterprise intends to carry out some repair work to increase the service life of this equipment. Thus, the weighted remaining service life of the furnace can be calculated as shown in Table. 5.6.

Table 5.6

Determination of weighted remaining service life

Cumulative physical wear and tear is simply the ratio of the weighted effective age to the total economic life of the furnace, which is 35.5%, i.e.

In this case, we evaluate the physical condition of the furnace as it currently exists. They did not take into account the costs of additional repairs that would be necessary to extend the life of the asset after the end of its currently expected service life.

Thus, the method of element-by-element calculation of physical depreciation is based on the procedure of weighing the effective age or remaining service life of each of the elements of a multi-element asset, taking into account the share of the cost of these elements (investments) as weighting coefficients in the cost of the assessed object as a whole, followed by determining the total physical depreciation using the formula "Age/Lifetime".

Another option for implementing the element-by-element calculation method is based on determining wear FIk for each of k elements of machinery and equipment according to the formula “Age/Service Life” and a weighted summation of the obtained values, taking into account the shares of the cost () of these elements in the cost C of the assessed object as a whole as weighting coefficients. Thus, the total physical depreciation of the valuation object is determined as the sum of the calculated depreciation of all its elements, weighted by the shares of their cost:

Yield reduction method

It is based on the assumption that the increase in physical wear and tear is proportional to the decrease in the profitability of equipment, i.e. reduction net profit, defined as the difference between revenue and costs. The FI value is determined as follows:

where is the profit received from the operation of new machines; – profit in the current time interval.

Example 5.8. In table 5.7 shows data on the operation of a metal-cutting machine purchased new in the first quarter of 2009. Determine the physical wear and tear of the machine in the first quarter of 2012.

Table 5.7

Machine performance indicators

For the first quarter of 2012 we have

The method is applicable in cases where there is reliable information about economic indicators equipment in the retrospective period. It gives the correct result only in the case when the decrease in profitability is not due to the presence of additional functional and economic obsolescence.

Method for reducing consumer properties

Reflects the dependence of consumer properties (CP) of machines and equipment on wear. Generalized PS are calculated as the sum of individual PSk, taking into account their weighting coefficients:

During operation, the substations are reduced by an amount, and physical wear will be

(5.5)

This method requires testing of the equipment being evaluated and the availability of technical, economic and technological documentation for the object being assessed.

Example 5.9. Main PS press – performance And reliability. According to expert estimates, their weights are 0.6 and 0.4, respectively. An analysis of the press’s operation showed that its actual productivity is 500 parts/hour, and its nominal productivity is 600 parts. The actual reliability indicator is MTBF - 300 hours, nominal operating time - 500 hours. Determine the physical wear of the press.

Press productivity is characterized by the number of parts produced per unit of time. Nominal productivity Pn = 600 parts/h, actual Pf = 500 parts/h. Thus, decreased productivity

Decreased reliability determined by the reduction in time between failures as

Physical wear and tear is calculated taking into account (determined experimentally) weighting coefficients of the significance of the considered consumer properties of the press:

The methods set out in subparagraph 5.2.2 are quite sufficient to professionally assess the physical wear of both simple and composite (multi-element) maintenance equipment.

Besides age And state When assessing equipment and calculating its wear, other factors should be taken into account, such as obsolescence and loss of usefulness, which must be included in the overall analysis of cumulative wear.

There are obsolescence of three types, which may affect the assessed value of the machine: (functional technological, functional operational and economic (external). Functional and economic obsolescence are measured and taken into account when determining the reasonable market value of movable property. Obsolescence is generally recognized as a factor leading to a further reduction from the upper limit of the assessed value property according to the cost approach.

• The following definition is given: "...Physical wear and tear of machinery and equipment is a change in the size, shape, mass or condition of surfaces due to wear due to constant loads or due to destruction of the surface layer due to friction." This definition from a course in mechanical engineering, while correct, is essentially technical, not economic, used to conduct an economic assessment, which is carried out by appraisers.
• The remark also applies to methods for assessing other types of wear and tear and obsolescence, since this is the essence of the profession of an appraiser, whose main product of activity is his professional opinion, and it cannot but be subjective.
• Method in the original in [C| and is called "Formula/Coefficient".
• The original method is called "Direct Dollar".
• This and the following two methods, used during the planned economy, when there was no idea of ​​functional and economic obsolescence, are presented exclusively in the domestic methodological literature. We refrain from making recommendations on their use, since a decrease in profitability, for example, may be associated not only with the presence of physical wear and tear. Moreover, the latter method requires the use of a large (about two dozen) number of operational parameters, such as operating time after major repairs, shift ratio, intra-shift utilization ratio, etc., and is not the most effective tool in the appraiser’s arsenal.
• To increase the degree of reliability, it is recommended to involve several experts, and the resulting wear value is found from the relationship: , where FI is physical wear; – FI assessment k-m expert, and the weighting coefficients that determine the weight of the opinion k th expert, are bound by the following condition: . However, “increasing the reliability” of an assessment in this way actually increases the degree of its subjectivity, since the subjectivity of expert opinions regarding the level of physical deterioration of an object is superimposed by the subjectivity of the weight of each such opinion when calculating the weighting coefficients.
• Kasyanenko T. G. Evaluation of machinery and equipment: textbook. allowance. SPb.: Publishing house SPbGUEF, 2002. P. 149.
• The statement is not undisputed. There is reason to believe that this formula measures general physical wear and tear. If the remaining life is limited by the emergence of new technologies (the emergence of models that exclude the use of old models) or the introduction of regulations that limit the remaining service life of the equipment, then this ratio measures functional or economic or, in general, total wear and tear.
• Repair is considered a way to eliminate that part of physical wear and tear that is called removable, and maintenance modernization is considered to be a way to eliminate functional obsolescence.
• See: , p. 51.

One of the main factors causing a decrease in the reliability of machines over time is the wear to which machines and equipment are subjected from the beginning of operation, but determining and assessing the wear of machines is a rather labor-intensive task.

V.Yu. Belopashentsev, an expert automotive technician, a practicing appraiser of machinery and equipment since 1997, - about methods for determining various types of wear.

Wear is a technical and economic concept that reflects, on the one hand, a decrease in the level of consumer properties of a machine and a decrease in its performance, and on the other hand, a corresponding decrease in the value of the machine as an object of evaluation corresponding to these processes.

Appraisers take into account physical, functional and economic wear and tear as the main factors of obsolescence, and therefore depreciation of machinery and equipment.

When assessing machinery and equipment, it is important to take into account all three types of wear and tear, for the following reasons:

a) relatively short (compared to other assets) standard service life of most machines, which indicates the significance of physical wear and tear on their value;

b) high dynamics of the emergence of new technologies, materials and machine designs, contributing to their relatively rapid functional wear;

c) relatively rapid changes in demand for many types of products produced by technological equipment, as well as competition of these products with foreign goods, which in some cases leads to external (economic) wear and tear of this equipment.

Note

When using income approach no special accounting for any wear is required, because the influence of each of them will be manifested in the amount of income created by the object of assessment. Obviously, the greater each of the depreciations, the less will be the amount of income and, accordingly, the value of the valued object.

When using comparative approach determination of physical wear and tear is often required to adjust the prices of close analogues by degree of wear. In this case, functional and external (economic) wear and tear can be taken into account indirectly, through the prices of close analogues or identical objects (weighed on market scales).

Only when using cost approach The process of determining the cost (C) of an appraisal object comes down to determining the full reproduction cost (CRC) followed by taking into account depreciation due to all three types of depreciation.

Simple addiction

When valuing machinery and equipment, determining and accounting for wear and tear is necessary due to its significant impact on the valuation cost of the object being valued. Physical wear and tear of a machine leads to a deterioration in technical performance, which inevitably affects its cost. In general, the cost (C) and the physical wear and tear of the machine are related by a simple relationship:

C = C in - C from physical = C in x(1 - K from physical), (1)

where C in is the total cost of reproduction (replacement cost) of the machine,

From physical - the cost of physical wear and tear of the machine,

K from physical - the coefficient of its physical wear.

K from physical x C in = C from physical (2)

As can be seen from formula (1), K from physical represents the share of the cost of reproduction that the machine lost due to physical wear and tear.

Determination methods

The following are known determination methods degree of physical machine wear when assessing them.

1. Physical condition examination method.
   The point of using this method is to compare the assessment object with one of many descriptions of its possible technical states in which it may end up as a result of wear.

   Typically, such a set takes the form of expert scales and tables, the rows of which correspond to various states and stages of wear and tear of the objects being assessed, indicating the corresponding coefficients of physical wear and tear. An example of such a scale is given in the table.

   To connect the wear and tear of a machine with its cost, scale tables for determining wear rates are usually built based on the processing of statistical information on the prices of new and used machines.

Rating scale

Physical wear (%)	Grade technical condition	Characteristics of technical state
		New, installed but not yet used equipment in excellent condition.
	Very good	Used equipment, completely repaired or reconstructed, in excellent condition.
		Used equipment, completely refurbished or refurbished, in excellent condition
	Satisfactory	Used equipment that requires some repair or replacement of individual small parts (bearings, liners, etc.)
	Conditionally suitable	Used equipment in a condition suitable for further operation, but requiring significant repairs or replacement of main parts (engine, etc.)
	Unsatisfactory	Used equipment requiring major repairs (for example, replacement of the working parts of the main unit)
	Unusable	Equipment for which there is no reasonable prospect of sale other than the value of the essential materials that can be extracted from it (scrape value).

Physical condition examination method The appraiser can apply it accurately enough only in situations where he is well acquainted with the object of assessment. In other cases, when determining the coefficient of physical wear and tear using this method, the appraiser can involve qualified specialists in the field of equipment operation for consultation on its technical condition (independent experts).

1. Effective age method
   For wear estimates machines, the concept of effective age (T eff) is introduced. If chronological age (T) is the number of years that have passed since the creation of the machine, then effective age (T eff) is the age corresponding to the physical condition of the machine, reflecting the actual operating time of the machine over the period (T) and taking into account the conditions of its operation. Knowing the effective age of the object being assessed allows us to more reasonably judge its wear and tear.

   K from physical = Teff / Tn,

   Where Tn is the standard service life of the machine.

   Usually, to determine Teff, an expert evaluates the remaining service life T ost of the object being assessed before its removal from service and write-off. In this case
   Teff = Tn - Trest

   Determining the remaining period assumes that the appraiser knows how the machine will be operated from the moment of assessment until the end of its service life (shift, load, working conditions, etc.).

2. Expert-analytical method
   The method involves determining the coefficient of physical wear and tear of a car while simultaneously taking into account its chronological age and an expert score of its physical condition. In this case, the physical wear and tear coefficient is obtained based on the prices of used and new machinery and equipment, i.e. it reflects the reaction of the secondary market to the degree of physical wear and tear of machinery and equipment.
3. Weighted average chronological age method
   The method can be applied when, after several years of operation of the machine, a number of units and parts have been replaced, and their age turns out to be different. In this case, the physical wear coefficient can be calculated using the formula

   K from physical = T av/vz / T n,
   where T av/vzz is the weighted average chronological age of the machine.

4. Main parameter deterioration method
   The method assumes that physical wear is manifested in the deterioration of any one characteristic operational parameter of the machine: productivity, accuracy, power, fuel consumption, etc.
   If such a parameter is found for a given type of machine, then the physical wear coefficient is calculated as follows:

   K from physical = 1 - (X/Ho)*n,
   where X, Xo is the value of the main parameter of the machine at the beginning of operation and at the time of evaluation,
   n - exponent (0.6-0.8)

From the moment they begin operation, machinery and equipment are subject to wear and tear, which increases with increasing service life of the objects and leads to them losing part of their usefulness, and, as a consequence, a certain part of their value.

In other words, wear and tear is the loss of value (depreciation) of property during operation under the influence of various factors of obsolescence and natural-temporal influences.

The causes of wear and tear may relate either to the object itself, or to the immediate environment of this object (the emergence of more advanced and competitive analogues, the emergence of new technologies or changes in the technological chain in which the object is included), or in areas not directly related to the object, then there are external to it.

The main factors of impairment (obsolescence) are usually considered physical, functional and external wear and tear.

Physical wear and tear - deterioration of the initial technical and economic properties due to the natural wear and tear of a particular object during operation and under the influence of various natural factors. In other words, this is the wear and tear of the materials from which the object is created, the loss of its original qualities, the gradual destruction of structures, etc.

Functional wear - depreciation of an object as a result of a discrepancy between its parameters and (or) characteristics and the optimal technical and economic level. The cause of functional obsolescence can be either a lack of optimal utility or its unused excess.

Examples of functional obsolescence include excess production capacity, design redundancy or insufficiency, high costs of auxiliary production, etc.

External (economic) wear and tear - depreciation of property due to influence external factors, namely: changes in optimal use, legislative innovations, changes in the relationship between supply and demand, deterioration in the quality of raw materials, labor qualifications, etc.

Exterior deterioration is almost always considered irreparable because the potential cost of eliminating the exterior elements that caused the deterioration always, with rare exceptions, exceeds the value added to the property.

Since any object can be subject to different types of wear and tear at the same time, the assessment takes into account the total wear and tear.

The calculation of cumulative depreciation assumes a certain procedure for assessing depreciation. It usually takes the following form: present value minus physical wear and tear, functional wear and tear, and external wear and tear. This is the generally accepted procedure for subtracting these various depreciation items from the current value. Sequence logic is derived from the normal life cycle of an asset. When an asset is new, the valuation is equal to the price at which it actually sells.

The presence of a buyer's desire and a seller's desire implies an assumption that the purchase of this asset is economically justifiable (i.e., there is a business need of a certain type). Once assets leave the manufacturing plant, they begin to depreciate in value. Typically, the first element of depreciation is physical depreciation as the asset is brought into service and used for its intended purpose. As the asset continues to be used, two elements of deterioration appear - recoverable and irreparable wear and tear. Correctable wear manifests itself in the form of normal repairs, while irreparable wear manifests itself in forms such as metal fatigue. Physical wear and tear is the only element of depreciation that lasts until some market or environmental event causes functional or external wear and tear.

Typically, a manufacturer improves a product incrementally over time, and when the manufacturer announces a “new and improved” version of the machine, a new type of obsolescence of an existing asset is introduced. Typically a new version is the result of some technological improvements causing some functional obsolescence. With significant changes in technology, functional obsolescence becomes significant. At this point, the asset is in use, experiencing physical wear and tear, and now has some functional wear added to it. As time passes, external factors such as decreased profitability in industry, increased competition, imports of foreign goods, shifts in market needs or laws, etc. lead to external obsolescence. This is usually the last element of depreciation affecting the asset.

This is the normal sequence of depreciation when using the cost approach. The sequence may change under certain circumstances. It is important that when using the cost approach the valuer seeks to separate out the different types of depreciation and ensure that there is no duplication of depreciation.

Cumulative wear the valuation object is defined as the sum of value losses under the influence of all factors of obsolescence (wear and tear). The usefulness coefficient, taking into account depreciation from cumulative depreciation, is determined by the formula:

TO G = K f * TO fun * TO V (5.15)

Where: TO f - coefficient of physical wear;

TO fun - coefficient of functional wear;

TO V - coefficient of external (economic) wear and tear.

Physical wear and tear

Physical wear is a natural process of deterioration of equipment characteristics during its operation under the influence of many factors, such as friction, corrosion, aging of materials, vibration, temperature and humidity fluctuations, quality of service, etc.

An increase in physical wear and tear leads to an increase in the likelihood of emergency equipment failures and a decrease in the quality characteristics of products manufactured using this equipment, which leads to a decrease in the remaining service life of the entire product or some of its components and parts.

The following types of physical wear and tear are distinguished:

1) mechanical wear, which results in a decrease in accuracy (deviation from parallelism and cylindricity);

abrasive wear - the appearance of scratches and burrs on mating surfaces;

crushing causing deviation from flatness;

fatigue wear, leading to the appearance of cracks and broken parts;

jamming, which manifests itself in sticking of mating surfaces;

corrosive wear, manifested in oxidation of the worn surface. Based on the reason that caused the wear, physical wear is of the first kind and the second kind.

Physical wear and tear of the first kind called wear and tear that has accumulated as a result of normal use.

Physical wear and tear of the second type called wear and tear resulting from natural disasters, accidents, violations of operating standards, etc. Based on the time of occurrence, wear is distinguished between continuous and emergency. Continuous wear is called a gradual decrease in the technical and economic indicators of an object during its correct but long-term operation. One type of continuous wear is mechanical wear of components and parts, which mainly affects the moving parts of machines and mechanisms.

Emergency wear is called rapid wear that reaches such proportions that further operation of the object becomes impossible, for example, cable breakdown. By the nature of its occurrence, emergency wear is indeed instantaneous, but in essence it is a consequence of continuous hidden wear.

Emergency wear due to external reasons is associated with personnel errors, sudden surges in supply voltage, and a discrepancy between the required and available consumables. For example, in internal combustion engines designed for low-octane fuel, when using high-octane gasoline, the valves quickly burn out, that is, emergency wear occurs.

Hidden wear called wear, which does not directly affect the technical parameters of the equipment, but increases the likelihood of emergency wear.

According to the degree and nature of distribution, global and local types of wear are distinguished.

Global wear and tear called wear that extends to the entire object as a whole.

Local wear called wear, which affects various components and parts of an object to varying degrees.

Depending on the technical feasibility and economic feasibility of restoring lost consumer properties, physical wear can be removable and irreparable.

Removable wear- wear, the elimination of which is physically possible and economically justified, i.e. wear that allows repair and restoration of the object from a technical point of view and is justified from an economic point of view.

Unrecoverable wear and tear those. wear that cannot be eliminated due to the design features of the object or is impractical to eliminate for economic reasons, since the costs of elimination (equipment repair or replacement of parts or assemblies) exceed the increase in the value of the corresponding object.

Depending on the form of manifestation, physical wear can be technical or structural. Technical wear and tear is called a decrease in the actual values ​​of the technical and economic parameters of an object in comparison with standard, passport data. Constructive called wear, which refers to the deterioration of the protective properties of external coatings.

Another manifestation of wear and tear is the increase in production costs in terms of materials, energy, and maintenance and repair costs, which significantly exceed the average cost of similar new equipment. Sometimes, as physical wear and tear increases, costs do not increase and costs remain below average. This situation may indicate deferred repairs and increased hidden wear.

The amount of physical wear and tear of an object during operation depends on many factors:

degree of load of the facility, duration of work, intensity of use;

quality of the object - perfection of design, quality of materials, etc.;

features of the technological process, the degree of protection of the facility from the external environment;

operating conditions - the presence of dust and abrasive contaminants, high humidity, etc.;

quality of care;

qualifications of service personnel.

As a result of physical wear and tear, the productivity of machinery and equipment decreases. This is caused primarily by an increase in downtime caused by repairs and maintenance, which reduces the useful working time. In addition, the wear and tear of the machine begins to affect a number of technical parameters from a certain point in time, which also reduces output. For example, the processing accuracy of metal-cutting equipment decreases, as a result, more frequent checks and adjustments are required, and the yield of defective products increases. According to statistics, productivity drops to 25% over 10 years of operation. Vehicles have reduced engine power and, accordingly, load capacity and speed.

The amount of physical wear depends on the service life and resource. The service life is measured by the calendar duration of operation of machines and equipment until the limit state occurs, and the service life is measured by operating time. Standard service life has been established for different types of equipment. However, the actual service life of machines and equipment varies greatly, as noted above, due to the influence of many factors: the intensity and mode of operation, the presence of peak loads, the quality and frequency of maintenance and repairs, environmental conditions, etc.

Equipment with wear of up to 5% can be conditionally classified as new, because in this state it still has no visible defects and technical parameters have practically not changed. Over time, technical parameters begin to deteriorate noticeably, and visible defects accumulate.

When reaching the stage of extreme wear, the product is unable to perform a number of functions and can completely fail at any time. The normative and technical documentation for each type of machinery and equipment specifies the limit state criterion. A characteristic feature of this stage is the economic inexpediency of repairing the product in the event of its failure. This stage is absent in a number of products that are used for life, for example, a nuclear reactor is dismantled without being brought to its limit state, an airplane and a diesel locomotive are taken out of service, etc.

The working condition of any, even a very old machine, can be restored, so such machines can be operated much longer than their economic life, replacing failing parts and assemblies with new ones.

At some point in time, a machine breaks down and can no longer perform its functions; its value drops sharply to a certain level - the cost of liquidation.

In valuation practice, it is customary to distinguish between direct and indirect methods for determining the amount of physical wear and tear.

Direct methods for determining physical wear are based on inspection of objects being assessed, testing in various operating modes, measuring parameters and characteristics, assessing the actual wear of the most important components, identifying and assessing external and internal defects and loss of marketable value. When directly determining wear, various tests of its technical parameters are carried out, and all significant parameters of the product’s functioning can be measured, as well as only the main ones. For example, when testing machine tools, parameters such as minimum and maximum spindle speeds, maximum power, electricity consumption, vibration strength of various components at various load levels, electrical resistance of power cables are measured, and all parameters of the test product manufactured on a given machine are also measured.

In valuation practice, direct methods for determining physical wear and tear are used extremely rarely.

Indirect methods for determining physical wear and tear are based on inspection of objects and study of their operating conditions, data on repairs and financial investments to maintain them in working condition. The following indirect methods for determining the physical wear and tear of machinery and equipment can be distinguished:

effective age method (lifespan method);

expert analysis of physical condition;

loss of profitability method;

performance loss method.

Effective age method (lifetime method)

This is the most common method for determining physical wear, along with the method of expert analysis of physical condition.

As mentioned above, the actual service life of machines and equipment may differ from the standard due to various factors: work intensity and operating mode, quality and frequency of maintenance and repair, environmental conditions, etc.

When using the effective age method, the following terms and definitions apply:

Service life (economic life T n ) - the period of time from the date of installation to the date of withdrawal of the object from operation (or the full operating life).

Chronological (actual) age T - the number of years that have passed since the creation of the object (or operating time).

Remaining service life T O - the estimated number of years before the facility is withdrawn from service (or the estimated remaining operating time).

Effective age T uh - the difference between the service life and the remaining service life (or the amount of operating time of the object over the past years).

The service lives normalized by industry standards for various groups of equipment and mechanisms indicate the permissible operating time of the equipment without a noticeable change in the quality of the machines’ performance of their functions. Sometimes, to determine the service life, the “Unified norms of depreciation charges for the complete restoration of fixed assets of the national economy of the USSR”, approved by the Resolution of the Council of Ministers of the USSR dated October 22, 1990, are used. No. 1072. It is assumed that operating conditions will correspond to those recommended by equipment manufacturers, and repair and maintenance work will be carried out on time and with high quality. It should be noted that when assessing the market value of machinery and equipment, the service life of the equipment is usually only a guide for the appraiser.

The service life of machinery and equipment is only advisory for property appraisers, since it reflects their capabilities for average operating conditions. In each specific case of determining the remaining service life of equipment, the actual physical wear and tear at the time of assessment should be taken into account.

The coefficient of physical wear and tear for objects with different actual ages is determined differently.

1) For relatively new equipment under normal operating conditions, the coefficient of physical wear is determined by the formula:

Where: T - chronological age; T n - service life.

It should be taken into account that a manufactured and temporarily unused machine, even if it is in a warehouse under conditions of careful conservation, has a partial deterioration in technical characteristics, and, consequently, a loss in value. In this case, the cost of the equipment at the time of start-up may differ significantly from the cost of new equipment, and this should be taken into account when assessing the cost.

For example, re-export VAZ cars supplied to the domestic market of Ukraine due to low demand abroad have a loss of market value of 10 to 30%. And these cars, like those just manufactured, have zero service life. The loss of market value occurs due to the fact that during the time interval from the moment of manufacture to the moment of sale, the re-exported car has undergone physical wear and tear (for the following reasons: fatigue processes in materials, oxidation and adsorption of lubricants, corrosion, loss of elasticity of rubber and plastic seals and hoses, aging of paint and varnish coatings and electrical insulating materials, etc.), and functional.

3) For older, complex equipment, as well as equipment that has worked longer than its economic life and is still working, the physical wear and tear coefficient is determined as follows:

Where: T uh - effective age;

T O - remaining service life.

4) The service life of equipment is significantly increased due to repairs, during which obsolete and worn-out mechanism components are replaced with new ones and the interfaces in friction units are restored. This is especially significant during major equipment overhauls, when the main components of the equipment are replaced and the basic properties of the most important parts of the machines are restored.

If the object has undergone major repairs, the coefficient of its physical wear and tear is determined as follows:

(
5.18)

The effective age of an object in this case is the weighted average chronological age of its parts. The effective age can also be determined by weighing the investment in the property (repair costs in monetary terms).

Example. The task is to determine the effective age of equipment assessed in 2001. We know the original cost and date of purchase. It is known that the equipment was purchased new in 1991, and ongoing repairs were carried out in 1994 and 1996. A major overhaul was carried out in 1999 with the replacement of some units.

The first step is to develop an appropriate basis for comparison, which in this case is the accumulated historical cost. It is determined by applying the appropriate cost index (for this example, assumed to be 10% per year) to the initial cost for each year:

If we consider effective age (or chronological age) as the number of years since the beginning of use, then effective age reflects the condition of the asset. If the chronological age is -10 years, then the current age will be less, because equipment is in better condition as a result of modernization compared to non-upgraded equipment.

The effective age can be determined by weighing the investment in an asset or group of assets. The initial cost is 41,900 UAH. and accumulated cost 80979 UAH. are misleading because they include excess capital investment made during the 1999 renewal, since these values ​​twice include assets that were replaced during the 1999 renewal. For example, if a pump was replaced in 1999, both costs count it twice - as part of the original investment in 1991 and again in 1999. To adjust the costs, the excess investment must be removed. To do this, we convert the 1999 upgrade cost back to the 1991 cost by discounting as follows:

(rounded to 8100 UAH)

The cost and accumulated cost are then reduced by the excess investment at the date of acquisition (1991 in this example). The result is presented below:

The next step is to consider the age of the investment.

This is done by multiplying the accumulated historical cost by the appropriate number of years:

Date of purchase	Accumulated initial cost, UAH	Age of investment, years	Weighted investments, UAH*year

The last step is to determine the effective age. This is done by dividing the weighted investment by the accumulated value.

The result - 6.66 years - is an acceptable estimate of the effective age of the equipment we are evaluating.

The problem solved in the example has been simplified to illustrate the methods and concepts used. We used cost information as a fair basis for comparison. There are other relevant bases. For example, the evaluator may consider estimating effective age based on performance.

To calculate the effective age, you can use some simplified methods that do not give as accurate results as the method described in the example. One technique is to use accumulated historical cost information to determine the composite cost index and use the cost index in interpolation. If we did this in the example, the composite value index obtained by dividing the accumulated historical cost by the original cost would be 1.82. Interpolation of this cost index according to the accepted cost index (10%) indicates that the effective age of the equipment is 6.3 years, which corresponds to approximately 1995.

A technique sometimes used is to weight the original cost by age (that is, the original cost less excess investment multiplied by the age in years). If this technique is used for the previous example, then the effective age will be 5.5 years.

The reasons for the differences in results obtained using these simplified techniques reflect the simplifying assumptions underlying the weighting design. The methodology used in the example is the most accurate because it actually measures the age of the investment on an equitable basis. Establishing a composite cost index and interpolating it is not as accurate a method due to the interpolation process as well as variations in the cost index. The third technique (original cost X age) is the least accurate because using age as a basis implies proportional relationships, and therefore gives equal weight to all costs

Expert analysis of physical condition

This method involves the involvement of experts to assess the actual condition of machinery and equipment based on their appearance, operating conditions and other factors. Employees of the chief mechanic service or the repair service of the enterprise can be used as experts. The appraiser can also use existing data from periodically conducted equipment condition surveys.

In general, you can use an assessment scale for determining physical wear and tear, compiled on the basis of research by specialist experts (Table 5.4) 1

Table 5.4

Physical wear and tear rating scale

Equipment condition	% depreciation
New
New, installed, and unused equipment in excellent condition
Very good
Like new, but slightly used and does not require any repairs or parts replacement
good
Used but refurbished or upgraded and in excellent condition
Normal
Used but in need of some repairs or parts replacement
Satisfactory (suitable for use)
Used, in working order, but requiring significant repairs
Bad
Used and requiring significant renovation, such as replacement of moving parts or major structural units

The concept of wear and tear in valuation activities is used in two senses:

1.As a technical term that determines the degree of material and physical wear and tear of the object being assessed, i.e. partial or complete loss of its original consumer properties;

2.As economic depreciation or obsolescence, characterizing the loss over time of the initial and replacement value of the valued object due to a decrease in its usefulness for various technical and economic reasons lying both in the object itself, or the conditions of its life, and outside the object and these conditions .

The degree of depreciation is expressed in shares or percentages in relation to the original or replacement cost of the object. There are physical, functional and economic (external) impairments generated by the corresponding types of depreciation.

The degree of cumulative wear or generalized degree of wear can be determined by the dependence:

S=1-(1-V)(1-E)(1-F)

S – degree of cumulative depreciation or impairment;

F, V, E – the degree of physical, functional and economic impairment expressed in shares, respectively.

Physical wear and tear.

As a technical concept, it has different types:

1. For reasons causing wear:

ü wear of the first type, accumulated as a result of normal operation and storage;

ü wear of the second type, resulting from natural disasters, accidents, violations of operating standards, etc.

2. According to the flow time:

ü continuous wear;

ü emergency wear.

3. According to the degree and nature of distribution:

ü global;

ü local.

4. By depth of wear:

ü partial;

ü full.

5. If possible, restore lost consumer properties:

ü removable;

ü irremovable.

Irremovable wear corresponds to defects, the correction of which at the date of assessment is practically (technically) impossible or economically impractical.

Removable wear is determined by the cost of eliminating it.

The degree of actual physical wear and tear is determined various methods:

1. Straight.

2. Indirect.

Direct methods include accurate methods for determining wear, based on the study of relevant objects, their testing, assessment of wear by objective control methods, etc.

The degree of real physical wear and tear of a complex object is defined as the average degree of wear of the most important components and assemblies, weighted by their share in the total original or replacement cost.

Functional wear.

Appears in:

1) loss of value caused by the emergence of either cheaper (in terms of the total costs of both investment and operating) objects of the same class, or more economical and productive analogues of other classes;

2) discrepancy between the characteristics of the object and modern general regional standards or safety requirements, environmental restrictions, market requirements, etc.;

3) changing the technological cycle in which the object is traditionally included (technological wear).

Economic (external) wear and tear.

It is determined by a decrease in the utility of an object as a result of the action of external factors.

Changes in market, economic, financial conditions, etc.

Full replacement cost- this is the cost of the analogue.

Analogue- this is an object that performs the same functions as the object being evaluated, has similar characteristics and parameters, has the same principle of operation and design, belongs to the same class, type, subtype according to the classifier and has the lowest cost of all analogues.

7. Physical wear and tear. Removable and irreparable wear. Direct and indirect methods for determining physical wear and tear. Return-life method. Method of direct monetary measurement of wear and tear.

Physical wear and tear, as a technical concept, has different types:

1. For reasons causing wear: 1) wear of the 1st type, accumulated as a result of operating (storage) standards; 2) wear of the 2nd type, resulting from natural disasters, violations of operating standards, accidents, etc.

2. According to the time of occurrence: continuous or emergency.

3.According to the degree and nature of distribution: global, local.

4. By depth of wear: partial, complete.

5. If it is possible to restore lost consumer properties: removable, irremovable.

Irremovable wear and tear corresponds to defects, the correction of which at the valuation date is practically (technically) impossible or economically impractical. Removable wear is determined by the degree to which it can be eliminated. The degree of real physical wear and tear is determined by various methods: direct, indirect.

Direct methods include accurate methods for determining wear, based on the study of relevant objects, tests, wear assessment by operational control methods, etc. The degree of real physical deterioration of a complex object is defined as the average degree of wear of the most important components and assemblies, weighted as their share in the total original or replacement cost.

Indirect methods include assessment of the general technical condition of the object as a whole, its actual service life, the volume of work performed (productivity), etc.

In appraisal activities, indirect methods are mainly used, one of them: an integrated assessment of the technical condition using a machine-like expert method.

a) Condition assessment: new - 5% wear. b)Very good condition - 6-15%.

c)Good - wear 16-35%. d) Satisfactory - wear 36-60%.

e) Conditionally suitable - wear 61-80%. f) Unsatisfactory - wear 81-90%.

g) Unusable - 90-100% worn.

The examination also takes into account the distribution of the repair impact and the TRC coefficient.

The most common indirect method is the age-life or effective age method. To determine wear using the age-lifetime method: Fn= =

Fn – degree of irreparable physical wear;

NL – the economic life of the object or service life;

RL – remaining useful life;

EA – effective age. Determination of the effective age is based on an analysis of the condition of the object, the number of years during which it has been in operation, as well as the remaining useful life at the time of assessment (determined either by expert means or by special calculation methods).

Determine the degree of physical wear of the machine under the following conditions.

Service life 15 years.

Time from production 5 years.

(15-5)/15=2/3=0,6

According to expert estimates, the remaining service life is 5 years.

Effective age 10 years. Wear 0.667.

The determination of EA is based on an analysis of the condition of the object, the number of years it has been in operation, as well as the remaining useful life at the time of assessment.

It is determined either by expert means or by special calculation methods.

Direct wear measurement method: F=

AC - impairment due to any type of depreciation; CN – full replacement cost.

Unremovable physical wear and tear.

It can be determined for the object of assessment as a whole and by the method of component-by-component decomposition.

The "Age, service life" method is used as the main method.

Technical resource - a resource for which the design and testing of an object is carried out.

Assigned resource - a resource valid at the time of assessment, upon reaching which the object is either removed from service or the resource is extended.

Based on safety conditions, the assigned resource is initially assigned less than the technical one, and then, as operating experience and special tests are accumulated, it is extended. The economic service life is taken to be the maximum value of the technical and assigned resources.

For objects that have saved consumer properties at a given level, the depreciating factor is the reduction in potential earnings over the remaining service life. This dependence on operating time is linear.

For these objects, the effective operating age is strictly equal to the passport age.

The degree of wear is calculated for each parameter separately.

To ensure safety, the calculated value of the degree of wear is taken to be the maximum value of all parameters.

The remaining service life according to the calendar for each operating parameter is determined:

RLki=max(NLk-Ak-Tm;NLk*(NLk-Ak-Tm)*Ri/NLi)

NLk - service life according to the calendar.

Ak- calendar time since release.

Tm is the time required to register real estate transactions and formalize the transfer of ownership.

We will take 0.5 years to register the aircraft.

Ri is the operating intensity of the i-th parameter for a calendar year (number of flights per year).

NLi is the service life according to the i-th operating parameter.

In addition to operating hours and the calendar, irreparable wear is affected by:

1. Major repairs.

2. Income and expenses per flight hour or one flight, which together determine the beginning of the last stage of the airframe's life (when major repairs are not practical).

Removable physical wear and tear.

Removable wear is considered to be wear that can be eliminated and repair is economically feasible.

There are assigned pre-overhaul and technical resources.

Impairment for deferred capital repairs:

ADcri=Cr*(1-OMRi/MRi)*(1/(1+i)OMRi/Ri)

OMRi is the remainder of the overhaul life according to the i-th parameter.

i is the discount factor.

MRi - overhaul life.

Ri is the annual operating time for the i-th parameter.

Cr - cost of major repairs.

Related information.