A+O regularly undertakes a wide variety of valuation mandates
for public institutions, corporate and private clients. The first
question is what is the most appropriate valuation methodology for
the collection or item in question. Below is a general outline of
the various types of methodologies employed and when any relevant
legislation or guidelines apply. This is a useful guide when
considering commissioning an ART+OBJECT registered valuation.
Insurance Valuation based on net current
replacement: This is defined as the cost of
replacing one asset with another of a substantially similar nature.
This is the most common form of valuation and is required by
insurance companies for inclusion on a general household policy of
a specialist collection policy.
Valuation for Financial Reporting: NZ IAS
16 and Treasury valuation Guidance requires the use of the basis
'fair value'. Other equivalent terms are Market value, Open Market
Value and Current Market Value
'Fair Value' is defined as the amount for which an asset could
be exchanged between knowledgeable willing parties in an arm's
Post Loss Valuation: Provides compensation for
loss under existing insurance cover. The methodology applied
is Replacement Value. This is defined as the cost of replacing one
asset with another of a substantially similar nature.
Valuation for Estate Division: Forecast Realisable
Value: This is defined as the forecast value of the
items at auction at the date as specified.
Valuation for Relationship Property Division:
Based on guidelines in the Relationship Property Act- th ecorrect
basis being Forecast Relisable Value. This is defined as the
forecast value of the items at auction at the date as