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Articles

CJRBE: Vol. 6 No.2, Dec. 2018

Standardization of Plant and Equipment in a Developing Country; Techno-Economic Considerations

  • Austin .C. Otegbulu
Submitted
December 20, 2018
Published
2018-12-21

Abstract

Standardization is critical in the promotion of “uniformity, consistency, reliability, public trust and international acceptability in valuation reports. Globalization has linked the world economy more closely than ever before as financial crisis in one country may likely have a ripple effect on other countries. In this regard each country must align its valuation standards with global expectations particularly in the valuation of plant and equipment. This paper is aimed at evaluating the extent of compliance to valuation process amongst Nigerian Estate Valuers with respect to plant and equipment valuation with a view to enhancing uniformity and reliability. A content analysis of valuation reports from randomly selected 26 firms in Lagos was carried out. The reports were evaluated to verify if they are in sync with acceptable valuation process and standards. Findings from the study showed that most of the reports are scanty in content with respect to machine capacity, serial and model number, make of machine, type of defect, basis and method of valuation among others. The paper recommended a more intensive training of valuers and an urgent need for specialization and production of a comprehensive valuation standard and manual to address these shortcomings.