The hardest asset on the balance sheet to appraise
Industrial machinery and equipment are the silent nightmare of fixed assets. They have no organized market like real estate, many are imported, some are one of a kind, nearly all have been modified over their lives — and they still need a defensible value for accounting, insurance, collateral and sale.
ABNT NBR 14653-5 exists precisely to bring rigor to this terrain. It establishes that the value of an industrial asset is determined from real market research, homogenized by verifiable technical factors — age, capacity, condition, operating hours, technology — and not by arbitrary depreciation percentages. That discipline is what separates a report that survives an audit from a spreadsheet nobody can reproduce.
When the report is necessary
- Deemed cost and fair value — measurement of industrial fixed assets on initial adoption and in revaluations, under CPC 27 / IAS 16 and CPC 46 / IFRS 13.
- Insurance — determination of the replacement value and the value at risk of plants and production lines, avoiding under- or over-insurance.
- Collateral and financing — capital goods pledged as collateral, leasing and sale and leaseback transactions.
- M&A and restructuring — asset due diligence, purchase price allocation, spin-offs and capital contributions.
- Decommissioning — orderly or forced liquidation value of decommissioned plants and idle equipment.
What we do
- Complete industrial plants, production lines, utilities (steam, compressed air, substations, effluent treatment) and auxiliary installations.
- Special-purpose equipment, made-to-order assets and imported capital goods with no direct comparable in the domestic market.
- Road fleets, forklifts, material handling equipment and support assets.
- Remaining useful life studies, technical depreciation rates and residual value per asset.
Methodology
- Planning and cataloguing — review of the fixed asset ledger, scope definition, grouping into asset families and inspection plan.
- Technical inspection — physical identification of the asset (nameplate, serial number, manufacturer, model, year), state of conservation, operating regime, accumulated hours or cycles, modifications and retrofits.
- Primary market research — enquiries with manufacturers, dealers, used-equipment traders and auctions, recording the source, date and conditions of each data point.
- Factor-based treatment — homogenization of the sample by age, capacity, condition, technology and transaction conditions, in accordance with NBR 14653-5.
- Technical depreciation — calculation of remaining useful life and residual value based on inspection and operating regime, not on tax tables.
- Report — memorandum per asset or per family, traceable spreadsheet, photographic record and ART.
Reference standards
- ABNT NBR 14653-1
- General procedures for asset appraisal
- ABNT NBR 14653-5
- Machinery, equipment, installations and industrial assets
- ABNT NBR 14653-7
- Historic and artistic heritage assets, where applicable
- CPC 27 / IAS 16
- Property, plant and equipment — deemed cost, depreciation and useful life
- CPC 46 / IFRS 13
- Fair value measurement
- IVS 2025
- International Valuation Standards
Deliverables
Frequently asked questions
Questions about plants, machinery and equipment
How do you appraise equipment with no similar item on the market?
When there are no direct comparables, the cost quantification method applies: the replacement cost of a new asset of equivalent utility is determined, and the physical, functional and economic depreciation identified during the inspection is applied to it. The report makes explicit the origin of the replacement cost and the criterion for each depreciation component.
Do you use tax depreciation tables?
Not as the basis of the report. The tax rate is a fiscal convention and rarely corresponds to actual wear. The technical appraisal determines remaining useful life and residual value from physical inspection, the operating regime and observed obsolescence — which is exactly what CPC 27 and ICPC 10 require.
Does the appraisal satisfy a Big Four audit?
Yes. The standard of traceability we adopt — the source of every data point, a reproducible homogenization memorandum and a documented inspection — is what independent auditors verify. We have a track record of engagements reviewed by major audit firms in Brazil and abroad.
Need plants, machinery and equipment?
Tell us about your case — asset type, purpose and deadline. We reply with a detailed technical proposal and schedule.
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Get in touch
Ask a question or request a quote
Write to stimabr@stimabr.com or use one of the channels below. We answer every message — including one-off technical questions, with no obligation.
Where we are
Denver Office Center – Saúde
São Paulo/SP – CEP 04304-010
We serve all of Brazil and clients abroad