Methodological Lapses in Plant and Equipment Valuation among Lagos Valuers

Machinery and equipment valuation for whatever purpose is to address the problem posed by the client. The aim of this paper is to evaluate the level of adherence to valuation processes and standard in machinery and equipment valuation by practitioners in the study area. The study is carried out through the distribution of 120 structured questionnaires to valuation practitioners in Lagos metropolis to find out their approach, level of training, experience, knowledge of standard etc. This is corroborated with the content analysis of 40 valuation reports on machinery and equipment to determine the degree of compliance to establish process and standard of practice.Findings from the study indicate that majority of reports are scanty with regard to methodology standard, functional and economical obsolescence, machine capacity, serial number, model number, etc. The non-compliance to valuation process and standard could be a major source of inaccuracy in valuation. Standardization is critical to the promotion of uniformity, consistency, reliability, public trust and international acceptability of valuation reports considering the effect of globalization on property market.