Asset Valuation

Asset Valuation is an accounting exercise that is normally done once a year to answer two questions:

  • what is the value of your assets that should be declared on your balance sheet
  • what is the cost of the assets that has been consumed over the Valuation Period, that is how much have they depreciated?

New Asset Valuation Module

Asset Valuation Module
RAMM now has two parallel Asset Valuation systems. You use the one you prefer. The existing one is accessed from RAMM Manager and is described in the Asset Valuation manual. The new AV system is in the Applications folder at the Menu. Watch the videos below to see how to use it.

What’s New?

The new Asset Valuation application has three main differences from the existing one.

  1. Fair Value assessments for assets can be imported into RAMM. These overrule system valuations.
  2. A history of Asset Valuation records is now kept in the RAMM database.
  3. Valuation records for individual assets are accessed from the Asset Valuation Detail report. These data are not currently associated with the asset record.

Before You Start

Getting Started with Asset Valuation
Here is a brief overview of the Asset Valuation module. Watch this first.
Getting Started with Asset Valuation (2:52)
Asset Valuation Process
To set up and run Asset Valuation you need to perform a number of steps in order.
Asset Valuation Process (3:50)
Asset Valuation Permissions
You need three permission sets to set up and run Asset Valuation. Here are the details.
Asset Valuation Permissions (3:20)

Valuation Period

The Valuation Period is usually the same as the financial year. You can define your own Valuation Periods. They must be one or more complete months in duration. They are an Asset Valuation item and must exist before you can set up and perform Asset Valuation.

Valuation Period
Valuation Periods are an item and must exist before you can start AV configuration.
Valuation Period (2:19)
Defining a Valuation Period
Valuation Periods are one or more complete months in duration and quick to define.
Defining a Valuation Period (0:58)

Asset Types

The Asset Types for which you can perform Asset Valuation includes all the RAMM Asset Types suitable for Asset Valuation and also all the UDTs that have been created with the Asset Valuation option selected. Notice that, for Asset Valuation, Bridges, Signs, Street Lights, and Traffic Signals have been divided into their constituent components by default. If Roads are included in your Asset Valuations, you can generate Road Components based on characteristics of the Carriageway, Surface, Pavement, or Treatment Length.

Asset Types
You perform Asset Valuation for RAMM Asset Types and UDTs that are suitable for AV.
Asset Types (2:31)
Components
You may have to create Components for Asset Valuation on complex Asset Types.
Components (1:14)

Imports

There are two types of valuation records that you can import into Asset Valuation – Assessed Values and Accumulated Depreciation. An Assessed Value is provided by a valuer who has undertaken an assessment or revaluation of an individual asset. Accumulated Depreciation is the initial cost and depreciation records that you may import into the Asset Valuation module before running the Asset Valuation calculation for the first time. The import files need to be comma-delimited with specific columns.

Import Asset Valuation Data
You can import Assessed Values and Accumulated Depreciation records.
Import Asset Valuation Data (3:06)
Importing Fair Values
You can import Assessed Values for one asset type at a time.
Importing Fair Values (4:45)
Importing Accumulated Depreciation Records
Import Accumulated Depreciation data before running the AV Calculation for the first time.
Import Accumulated Depreciation Data (3:56)

Road Components

You use Road Components to value all the roads or land in your network, so long as the core aspect you use to value roads and land is the Carriageway, Surface, Pavement, or Treatment Length. Road Components are user-generated asset records based on the characteristics you define. They allow contiguous lengths of road that have the same characteristics for valuation purposes to be merged and valued as a single record.

Road Components
You use Road Components to value all the roads or land in your network.
Road Components (3:11)
Adding a Road Component
You determine when one Road Component will end and another start.
Adding a Road Component (3:32)
Populating a Road Component
The Component tables can be populated from your RAMM database at any time.
Populating a Road Component (1:57)

Asset Configuration

Configuring the assets to be valued is the largest part of the Asset Valuation process. There is a number of steps to work through starting with selecting the assets to include in the valuation. You then configure each asset type in turn. It is strongly suggested that you configure one asset type at a time.

Asset Configuration
You configure your assets from the Default Commission Date to the Asset Subtypes.
Asset Configuration (2:23)
Adding General Details
The Remaining Useful Life calculation will fail if the asset has no build or commission date.
Adding General Details (1:36)
Condition and Asset Valuation
Condition affects an asset’s remaining useful life. It is recorded using the NAMS scale.
Condition and Asset Valuation (4:38)
Adding a Condition Effect
Condition Effects change an asset’s RUL if its Condition Rating is different from expected.
Adding a Condition Effect (2:21)
Adding Parent Criteria
Parent Criteria which apply to every Asset Subtype you create for an asset class.
Adding Parent Criteria (1:28)
Asset Subtypes
Asset Subtypes are assets with similar characteristics grouped for Asset Valuation.
Asset Subtypes (5:21)
Asset Subtypes
Asset Subtypes have their own Description, Unit of Measure, Condition and Calculation.
Asset Subtypes (3:19)
Defining Asset Subtype Criteria
Asset Subtype Criteria are combinations of Table, Column, Operator and Value.
Defining Asset Subtype Criteria (2:30)
Defining Subtype Costs
Subtype Costs parameters determine the value of Assets for an Asset Subtype.
Defining Subtype Costs (3:43)
Defining Period Costs
Period Costs determine which Subtypes Costs will be used in a valuation calculation.
Defining Period Costs (4:20)

Valuation Calculations

Imagine you have an asset which would cost $10,000 to replace today. If it had a Total Useful Life of ten years with a Residual Value of zero, and it was placed in service in 2010, then you expect it to be replaced in 2020 when it becomes worthless. You run the Asset Valuation calculation to determine the asset’s value on a particular date and the amount that it has depreciated to that date.

Valuation Calculations
Watch this video before you run the Valuation Calculation for the first time.
Valuation Calculations (7:58)
Running Valuation Calculations
The accuracy of your Valuation Calculations will match your asset data and AV set up.
Running Valuation Calculations (2:08)

Analysis

You analyse your Asset Valuation results with the Valuation Detail and Valuation Summary reports. The Valuation Detail report displays individual asset records. You use this to check valuations of individual assets. The Valuation Summary report gives you the total values you need for reporting.

Analysis
Use the reports for AV data analysis. Once audited, finalise the settings for the AV period.
Analysis (2:04)
Asset Valuation Summary
The Asset Valuation Summary report gives you the total values you need for reporting.
Asset Valuation Summary (2:23)
Asset Valuation Detail
The Asset Valuation Detail report displays individual asset records for asset subtypes.
Asset Valuation Detail (3:21)