Fire, Earthquakes and Adequate Insurance Cover

Due to the large extent of commercial property loss in the canterbury earquakes and subsequent building demolitions, we were engaged to assist many clients with valuations to support their insurance claims.
Moving forward we have had a lot of enquiries from businesses keen to ensure they have adequate insurance cover on their plant, machinery and fit out. This includes thinking about what allowances need to be considered for potential demolition costs and inflationary provisions, both during the period of insurance and the period of reinstatement, the latter which can be considerable in some cases.
If this is an area you have concerns around, please do not hesitate to contact us for no obligation advice on whether a valuation may help in your situation.

Property Institute of New Zealand (PINZ)

Brett Williams is a senior registered member of the institute, whose professionals provide services in a number of property-related areas including:
Plant and Machinery valuation, Financial analysis, Property management, Property valuation, Property consultancy & development and Facilities management.
The institute follows international trends, and after working closely with the Australian Property Institute (API) to form a common set of standards across the two economies, have now moved forward to embrace International Valuation Standards (IVS's) as the minimum requirement for their members to adhere to. More information on the Institute and its services can be found at www.property.org.nz

School Asset Registers and Stock Takes

Williams Valuations Ltd have been involved with stock taking and reconciling school assets for over fifteen years. We can cover assignments throughout New Zealand and regularly work in the Auckland region. We offer a full stock take and reconciliation service to schools.
As a crown entity, public sector schools are required to comply with accounting Standard NZ IAS-16. This standard requires schools to ensure all major assets are recorded on the asset register, depreciated and reflected at fair value in the accounts. The Ministry of Education has recently advised new guidelines to help schools comply with this new standard.
Schools are advised to no longer re value their assets. The main reason for this is that under NZ IAS-16 if a re valuation is completed then it must, subsequently, be conducted on an annual basis. The Ministry has recognized that the above would be an unnecessary financial cost to schools. Instead they are advising schools conduct a stock take of their assets to ensure that the asset register accurately reflects the items that are physically on the school premises.
The asset register should be reconciled to this stock take, all assets accounted for should be left at book value, all assets unaccounted for culled out and any additional assets found should be entered at a fair value. It is recommended that these stock takes be completed by a recognized professional or someone who has expertise in this area.
Our stock take service will ensure schools meet all of the NZ IAS-16 standards, comply with all of the above requirements and meet any audit requirements in relation to the fixed asset register. Any enquiries or for further information please call Brett Williams, refer to the contact us page.

Purchase Cost Allocation - Commercial Investment Properties
(maximise your depreciation claim)

Did you know that when purchasing an investment property you can undertake a one-off purchase cost allocation? This is where the building fit out assets are valued separately from the building structure, in accordance with the Inland Revenue's asset categories, then apportioned appropriately over the buildings purchase cost.
In regards to the 2010' legislation changes on depreciation, building fit out assets are still able to be depreciated. The depreciation rates for these fit out assets are considerable and as a property investor this enables you to improve your annual cash flow (additional tax deductions). Whether your building is new or old, a small office block/warehouse or a large shopping centre, large benefits are there. Among the large list of assets in this fit out category are items such as air conditioning, plumbing and plumbing fixtures, electrical reticulation, internal partitions (fixed and non fixed), hot water cylinders, light fittings, floor coverings, blinds and curtains, suspended ceilings, escalators, security systems and fitted furniture.
The best time to undertake a purchase cost allocation is within a short time frame after the transaction has taken place. We will work in conjunction with your accountant or tax consultant, with our valuation available in electronic form for ease of input.
It is also possible to undertake a purchase cost allocation retrospectively or, for investors who are selling their property, we can undertake a sales price allocation. This is effectively the same process but, undertaken for the vendor of the property. By undertaking a sales price allocation you can minimise the tax payable on depreciation recovered.
For further information or enquiries please call Brett Williams, refer to the contact us page.