Plant & Equipment Valuation Checklist | Australia
Written by: Sydney Property Valuation Editorial
Last updated: June 2026
Introduction
This checklist explains what to prepare for a plant and equipment valuation and the different bases of value that may apply. Good preparation — especially a clean asset register — helps the valuer produce an accurate report and keeps the inspection efficient. It is written for business owners, accountants, insolvency practitioners and asset finance professionals.
Plant and equipment (P&E) valuations cover machinery, vehicles, fit-out, tools and other tangible business assets. They are used for financial reporting, insurance, asset finance, business sale, restructuring and insolvency. The right basis of value depends on the purpose, so it’s important to confirm this before the valuer starts.
This is general information only and is not financial, tax or accounting advice. The business’s accountant or adviser should confirm the requirements for a specific matter.
Who this checklist is for
- Business owners valuing machinery and equipment for sale, finance or reporting
- Accountants needing values for financial statements
- Insolvency practitioners assessing assets for realisation
- Asset finance and leasing firms confirming security values
- Insurers and brokers setting sums insured for equipment
Bases of value — and why they differ
The same asset can have different values depending on the purpose:
- Market value: The value in an orderly sale between willing parties.
- Fair value: Often used for financial reporting.
- Replacement / reinstatement cost: For insurance purposes.
- Forced sale or liquidation value: For insolvency or a rapid disposal, typically lower than market value.
Confirming the basis up front avoids a report that answers the wrong question.
The plant and equipment checklist
Work through the categories below. Not every item applies to every matter — gather what is relevant.
Asset register and records
- A current asset register listing each item
- Purchase invoices or acquisition records with dates and cost
- Depreciation schedule from the accountant
- Maintenance and service records for major items
Item-level detail
- Make, model and serial numbers
- Year of manufacture and hours/kilometres where relevant
- Condition notes and any known faults
- Attachments, tooling and ancillary equipment
Location and access
- Site addresses where assets are held
- Access and safety arrangements for inspection
- Whether assets are installed, leased or financed
Ownership and encumbrances
- Ownership details and any finance or lease over the assets
- PPSR (Personal Property Securities Register) details, where relevant
Supporting documents
- Photographs of major items
- Any prior valuations
- The reason for the valuation and the valuation date
Instruction details to include
When you instruct the valuer, confirm the following in writing so the scope is unambiguous:
- The purpose — reporting, insurance, finance, sale or insolvency
- The basis of value required for that purpose
- The valuation date and the intended users
- Whether the assets are to be valued in situ (installed and working) or as if removed
Whether an asset is valued installed or removed can make a material difference, particularly for large or fixed machinery.
Common mistakes to avoid
- An outdated or incomplete asset register: Missing items or wrong details slow the valuer and reduce accuracy.
- Not confirming the basis of value: Market value and forced sale value can differ substantially.
- Overlooking finance and encumbrances: Assets under finance affect what is realisable.
- Forgetting serial numbers and hours: These are key to identifying and valuing individual items.
- Poor inspection access: Delays and safety issues hold up the report.
- Assuming book value equals market value: Depreciated book value is an accounting figure, not a market assessment.
Frequently asked questions
- What’s the difference between market value and forced sale value? Market value assumes an orderly sale between willing parties; forced sale (or liquidation) value assumes a rapid disposal and is usually lower. The purpose of the valuation determines which applies.
- Does book value equal market value? No. Depreciated book value is an accounting figure. Market value reflects what the asset would actually sell for, which can be higher or lower than the book figure.
- Why do you need serial numbers and hours? They identify each item precisely and affect value — two similar machines can differ significantly based on age, hours run and condition. Accurate identification improves the report.
- Should assets be valued installed or removed? It depends on the purpose. Large or fixed machinery can be worth much less once removal and reinstallation costs are considered, so confirm which basis you need before the valuer starts.
- What if assets are under finance or lease? Finance and leases affect what is genuinely realisable. Note any encumbrances, including PPSR registrations, so the report reflects the true ownership position.
- How current does the asset register need to be? As current as possible. A clean, up-to-date register with makes, models and serials speeds up the inspection and reduces the risk of missing or misidentified items.
Professional use note
Accountants, insolvency practitioners and finance professionals are welcome to share this checklist with clients as a general preparation resource before a plant and equipment valuation. It helps the business assemble a clean asset register and the records the valuer needs, making the inspection and report faster and more accurate.
This checklist is general information and does not replace advice specific to the matter.
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