Stages of the salvage value method in order. Assessment of the liquidation value of the enterprise. Definitions for salvage value

Zakharova Nadezhda Nikolaevna, Chief Financial Consultant of the Consulting and Valuation Department of Nexia Pacioli Consulting LLC, Moscow, Russia

The amount determined by the residual value method under the cost approach is, in fact, the market value calculated by the method, which is based on a number of assumptions.

To apply the salvage value method, the following conditions must be met:

1. the enterprise has ceased operations or there are reasons to believe that it will cease to exist in the near future;

2. the controlling interest (or one that is capable of causing the sale of assets) is being assessed;

3. The value of the enterprise upon liquidation will be higher than upon continuation of activity.

The theoretical foundations of the salvage value method are described with varying degrees of detail in current publications by domestic and foreign authors. (Artemenkov, Zhukov, 2011; Gorchakova, 2005; Goryunov, Babicheva, Kozlova, 2010; Zakharova, 2015; Ivanova, Shmachin, 2014; Kasyanenko, 2007; Leifer, 2006; Fomenko, 2015; Kholodkova, 2013; Alderson, betker, 1995; Belo, Lin, Vitorino, 2014; Ting, Warachka, Zhao, 2007; Golec, Gupta, 2014; Jafarinejad, Jory, Ngo, 2015; Kim, Lim, 2010; Volkov, Smith, 2015), as well as in most business valuation tutorials.

In general, the essence of this method can be summarized as follows: the value of the business (equity) is defined as the amount of income from the sale of assets minus the costs of selling and the costs of repaying liabilities.

The basis for the calculation is the company's balance sheet on the date closest to the valuation date. In general, the calculation steps are as follows:

1) development of a calendar plan for the liquidation of assets;

2) calculation of the market value of assets, and then their liquidation value;

3) calculation of direct costs for liquidation;

4) calculation of other costs (costs of maintaining the enterprise until the moment of liquidation);

5) calculation of taxes and payments related to liquidation (profit tax, payments to dismissed employees, etc.);

6) calculation of the amount of obligations of the enterprise;

7) deduction from the value of the liquidation value of the assets of the costs of liquidation and liabilities of the enterprise.

When describing the liquidation value method, Russian authors mention the need to calculate the liquidation value of the assets being sold, that is, it is assumed that the assets of the enterprise will be sold in a shortened time frame.

From the point of view of Russian legislation, the salvage value is determined as follows:

"In determining salvage value of the appraised object, the estimated value is determined, which reflects the most probable price at which this appraisal object can be alienated for the period of exposition of the appraised object, which is less than the typical exposure period for market conditions, in conditions when the seller is forced to make a transaction for the alienation of property.

When determining salvage value, in contrast to determining the market value, the influence of extraordinary circumstances is taken into account, forcing the seller to sell the object of assessment on conditions that do not correspond to market ones.

It should be noted that the concepts of "liquidation value" and "liquidation value method" are not identical. The liquidation value method, as mentioned above, allows you to determine the market value of a business based on certain assumptions.

Let's turn to the International Glossary of Business Valuation Terms:

At the same time, the appraiser in his work models the conditional situation of liquidation of the enterprise and must proceed from the criterion of maximum efficiency. In practice, the company has the opportunity to start the actual liquidation without making a decision on liquidation. We are talking about reducing or stopping production, reducing staff, selling property, etc. These procedures can be called "preparation for liquidation" or "preparatory period". This period depends primarily on the composition of the company's assets.

Consideration on a conditional example

For example, let's take a conditional situation of selling an asset with the following basic parameters:

- market value of the asset: 1000 conventional units (c.u.);

- market exposure period: 10 months.

The formula for calculating the liquidation value of an asset will be taken according to the work of Kozyr Yu.V. “Methodology for determining the liquidation value of property. Estimation of liquidation value» (Trump, 2000):

, (2)

where P L - liquidation value;

P m - market value;

y is the average market return on investments in such objects;

t e - average market exposure time of the object;

t is the specified (statutory) time for the sale of the object;

T is the period of time to which the discount rate is tied.

For case Awe will take the market return of the asset equal to 10%, and the cost of maintaining the asset - 30 c.u. per month.

For case Bwe will take the market return of the asset equal to 30%, and the cost of maintaining the asset - 10 c.u. per month.

On the graphs (fig. 2 and fig. 3 ) presents the main economic indicators for situation A and B.

Table 3

Average exposure times for objects (source - compiled on the basis of the article "Determining the typical exposure period when calculating the liquidation value" )

Object type	Market Condition
Object type	buyer's market	equilibrium market	seller's market
Real estate (excluding standard apartments and properties worth more than $10 million)	6 months	3 months	1 month
Business (controlling stakes, shares worth less than $10 million)	6-12 months	3 months	2-3 months
Apartments (typical)	1 month	2 weeks	1 week
Mass-produced equipment (new and used)	1-2 months	1 month	2 weeks
Cars (with the exception of elite ones) are new	1 month	2-3 weeks	1 week

The liquidation value method consists in determining the difference between the value of the property and the costs of liquidation. It turns out that it is most rational to apply this method, provided that the enterprise is threatened with bankruptcy. In other words, this is the moment when the organization stops its operations, sells at auction all its tangible and intangible assets, and also begins to pay off debts and debts on its own obligations.

In the case of calculating the liquidation value, the appraiser needs to take into account and take into account all the expenses that will be incurred during liquidation: commission and administrative costs aimed at maintaining the work of the appraised object until the moment of liquidation, as well as expenses for the services of lawyers and accountants.

There are three types of liquidation:

1. orderly liquidation, which is the sale of the property of the enterprise within a two-year period. The main purpose of this sale is to receive the maximum possible amount from the sale of the company's assets. For such a long period of time, the organization manages to prepare the property for sale and disseminate information to potential buyers, while the second party to the transaction has enough time to think about the decision and raise funds for the purchase, as well as for its implementation, transportation, etc.

2. forced liquidation is the sale of the property of the enterprise to the maximum short time. Most often this happens for all assets at the same time and at one auction.

3. liquidation with the termination of the existence of the assets of the enterprise - this is the case when all the assets of the enterprise are subject to destruction in order to make room and build a new enterprise with great potential. With this type of liquidation, the value of the property becomes negative, because the costs are calculated only for the disposal of assets.

In the scientific field, the following stages of business valuation using the liquidation value method are distinguished:

1. justification for the choice of the liquidation value: in accordance with the law, in the event of a forced sale of the company’s property (due to its bankruptcy) and due to the short sale deadlines, the appraiser cannot calculate the market value of such an appraisal object, since the sale price of assets will be a forced price for owner. Due to the impossibility of calculating the market value, the appraiser is obliged to justify in writing the choice of another, different type of value;

2. development calendar schedule the sale of assets is carried out in order to maximize the proceeds from the sale of the company's assets;

3. determination of the current value of assets (excluding liquidation costs): the value of assets is adjusted for the amount of overhead costs for their sale;

4. discounting the adjusted value of the assets being valued (the discount rate should take into account the amount of risks that can be incurred when selling assets);

5. addition (or subtraction) of operating profit (loss);

6. determination of the amount of obligations. The appraiser adjusts the long-term and current debt of the appraised object;

7. calculation of the liquidation value of the enterprise, as the difference between the adjusted current value of the assets and liabilities of the enterprise. The final liquidation value is influenced by the factors that led the business to liquidation. So if bankruptcy was the result of a low level of management, then the appraiser does not take this factor into account, but if the depreciation was caused by a high degree of depreciation of the company's assets and an unfavorable location, then the level of liquidation value of the appraisal object is significantly reduced.

With the cost (property) approach to business valuation, the appraiser considers the value of the enterprise, taking into account the costs incurred.

The balance sheet value of the assets and liabilities of the enterprise due to inflation, changes in market conditions, accounting methods used, as a rule, does not correspond to the market value. As a result, the appraiser is faced with the task of adjusting the balance sheet of the enterprise. To do this, the fair market value of each asset of the balance sheet is first assessed separately, then the current value of the liabilities is determined, and finally, the current value of all its liabilities is deducted from the fair market value of the total assets of the enterprise. The result shows the estimated value equity enterprises.

The basic formula in the costly property approach is:

Equity = Assets - Liabilities

Advantages of the cost approach:

– When evaluating new facilities, the cost approach is the most reliable.

– This approach is expedient or the only possible one in the following cases:

– technical and economic analysis of the cost of new construction;

- substantiation of the need to update the existing facility;

– assessment of buildings for special purposes;

- when evaluating objects in the "passive" sectors of the market;

– analysis of land use efficiency;

– solution of object insurance problems;

– solving problems of taxation;

– when agreeing on the value of the property obtained by other methods.

Disadvantages of the cost approach:

– 1. Costs are not always equivalent to market value.

– 2. Attempts to achieve a more accurate assessment result are accompanied by a rapid increase in labor costs.

– 3. Inconsistency between the costs of acquiring the property under appraisal and the costs of new construction of exactly the same property, since accumulated depreciation is deducted from the cost of construction during the valuation process.

– 4. Problematic calculation of the cost of reproduction of old buildings.

– 5. Difficulty in determining the amount of accumulated wear and tear of old buildings and structures.

– 6. Separate assessment of the land plot from buildings.

– 7. Problematic evaluation of land plots in Russia.

Business valuation using cost approach methods is carried out on the basis of the value of those assets and liabilities that the company acquired during the period of its operation on the basis of the principle of substitution. An asset should not be worth more than the cost of replacing its major parts.

This approach is represented by two main methods:

net assets method;

salvage value method.

The calculation by the net asset method includes several stages:

1) the reasonable market value of the real estate of the enterprise is determined;

2) the market value of machinery and equipment is estimated;

3) the cost of intangible assets is calculated;

4) the market value of financial investments (both urgent and short-term) is estimated;

5) inventories are translated into current value;

6) deferred expenses are estimated;

7) accounts receivable are estimated;

8) the company's liabilities are translated into the current value;

9) the cost of equity capital is determined by subtracting the fair market value of the sum of assets of the current value of liabilities.

The net asset method is used if the appraiser has reasonable confidence regarding the functioning of the enterprise in the future, i.e.:

· The company being valued has significant tangible assets.

· The company being valued does not have historical profit data or it is not possible to predict future profit.

· Appraisal of a new enterprise or construction in progress.

· The company being valued is highly dependent on contracts or does not have a permanent clientele.

· A holding or investment company is being valued that does not profit from its own production.

With respect to the net asset method, all the general business valuation rules established for cost approach methods apply.

The information base of the net asset method is the balance sheet of the enterprise. The appraiser analyzes and adjusts all quarterly balance sheet items as of the last reporting date to determine the market value of existing assets.

Net assets- this is the amount determined by subtracting from the amount of assets joint-stock company accepted for calculation, the amount of its obligations accepted for calculation. Valuation using the net asset methodology is based on the analysis of financial statements. The main financial statements analyzed in the evaluation process: balance sheet; Report on financial results; traffic report Money; applications to them and decoding. Preliminarily, the appraiser carries out an inflation adjustment, the purpose of which is to bring retrospective information for past periods to a comparable form; accounting for inflationary price changes when making forecasts cash flows and discount rates. A distinctive feature of the cost approach in assessing the value of an enterprise is that for the purposes of assessment, the assets of an enterprise are divided into groups, each part is evaluated, and then the resulting values are summed up.

Enterprise Value = Market Value of Assets - Liabilities.

Advantages and disadvantages of the net asset method

Advantages: 1) the method is based on reliable information about real assets owned by the enterprise, which eliminates the abstractness inherent in other valuation methods. 2) In the context of the formation of the real estate market, this method has the most complete information base, and also uses costly methods of assessment traditional for the Russian economy.

Disadvantages: 1) The net asset method does not take into account the efficiency of the enterprise and the prospects for its development. 2) The method does not take into account the market situation of supply and demand for similar enterprises.

salvage value method.

The calculation of the liquidation value of the enterprise includes several main stages: 1. The latest balance sheet is determined. 2. A calendar schedule for the liquidation of assets is being developed, since the sale various kinds assets of the enterprise (real estate, machinery and equipment, inventory) requires different time periods. 3. Determine the gross proceeds from the liquidation of assets.4. The estimated value of assets is reduced by the amount of direct costs. Direct costs associated with the liquidation of an enterprise include commissions for appraisal and law firms, taxes and fees that are paid upon sale. Given the asset liquidation calendar schedule, the adjusted values of the assets being valued are discounted to the valuation date at a discount rate that takes into account the risk associated with the sale. 5. The residual value of the assets is reduced by the costs associated with holding the assets until they are sold, including the costs of holding inventory finished products and work in progress, preservation of equipment, machinery, mechanisms, real estate, as well as management costs to maintain the operation of the enterprise until the completion of its liquidation. The discount period for the corresponding costs is determined by the calendar schedule for the sale of the company's assets. 6. The operating profit (loss) of the liquidation period is added (or subtracted). 7. Priority rights to severance benefits and payments to employees of the enterprise, claims of creditors for obligations secured by a pledge of property of the liquidated enterprise, debt on mandatory payments to the budget and extra-budgetary funds, settlements with other creditors are deducted. Thus, the liquidation value of the enterprise is calculated by subtracting from the adjusted value of all assets of the balance sheet the amount of current costs associated with the liquidation of the enterprise, as well as the value of all liabilities.

The liquidation value is the amount of money that the owner of the enterprise can receive upon liquidation of the enterprise and the separate sale of its assets.

The procedure for assessing the liquidation value of the enterprise:

· Development of a calendar schedule for the liquidation of the company's assets;

· Calculation of the current value of the company's assets;

· Determining the amount of debt obligations of the enterprise;

· Calculation of liquidation cost of the enterprise.

The liquidation value is calculated based on the following formula: V = Vassets+CF-Cost-Q, where Vassets is the current value of the company's assets, CF is the profit (loss) of the liquidation period, Cost is the cost of liquidation costs, Q is the cost of the company's debt obligations.

Estimation of liquidation value is carried out in the following cases:

The salvage value method is used if the appraiser has reasonable doubts about the continued operation of the enterprise in the future. When determining the liquidation value of assets, the appraiser determines the value of the assets, taking into account the limited exposure period when they are sold, less the costs associated with the liquidation of the enterprise. Liabilities are accepted for settlement at market value.

When determining the liquidation value of a business, the cost business reputation and intangible assets associated with the receipt of income in the future is depreciated and taken equal to zero.

For other procedures of the salvage value method, the general business valuation rules established for the cost approach apply.

The net proceeds received after the liquidation of the assets of the enterprise and the payment of its debts are reduced to the current value.

In addition, when liquidating (selling) assets, the company pays commissions to intermediaries, bears the costs of dismantling, and is also forced to reduce the price below the market price to ensure liquidity. The cost of the sold assets is deducted from the value of liabilities, the costs of the enterprise (including the maintenance of management personnel), commissions to intermediaries, taxes on the sale of property. All income and costs must be discounted.

The salvage value method in valuing an enterprise's business is used when the enterprise is in a situation of bankruptcy or liquidation, or there is serious doubt about the ability of the enterprise to remain in operation and continue its business.

Russian legislation and the standards of the Russian Society of Appraisers give the following definitions of liquidation value:

- Liquidation value of the appraisal object - the value of the appraisal object in the event that the appraisal object must be alienated within a period less than the usual exposition period for similar objects.
- Salvage value, or forced sale value - the amount of money that can realistically be obtained from the sale of a property in a time frame that is too short for adequate marketing in accordance with the definition of market value. In some States, situations of forced sale may include cases with an involuntary seller and a buyer, or buyers who are aware of the difficulties experienced by the seller.

Thus, the liquidation value is the market value of the appraisal object minus all costs associated with its implementation and after settlements with all creditors. The salvage value may vary depending on whether the sale is urgent or occurs in the normal course of business. In the latter case, the salvage value will be close to the true market value less costs.

There are three types of salvage value:

- Orderly, when the sale of the assets of the liquidated enterprise is carried out within a reasonable period of time so that the highest possible sale prices of the assets can be obtained;
- Forced, when the company's assets are sold as quickly as possible, often simultaneously and at the same auction;
- The cost of the termination of the existence of the assets of the enterprise, when the assets of the enterprise are not sold, but written off and destroyed. The value of the enterprise in this case is a negative value, since in this case certain costs are required for the destruction of tangible assets.

The sequence of work on the calculation of the orderly liquidation value of the enterprise, i.e. the value that can be obtained in the orderly liquidation of the enterprise's business, is as follows:

- Development of a calendar schedule for the liquidation of the company's assets.
- Calculation of the current value of assets, taking into account the costs of their liquidation.
- Adjustment of the current value of assets.
- Determining the value of the company's liabilities.
- Subtraction from the current (adjusted) value of assets of the value of the company's liabilities.

The development of a calendar schedule for the liquidation of the assets of the enterprise is carried out in order to maximize, as far as possible, the proceeds from the sale of assets to pay off the debt owed to the enterprise.

As a rule, it is assumed that the business of the enterprise is terminated and only the process of liquidation of the enterprise is carried out. liquidation large enterprise takes about two years.

Calculation of the current value of assets is carried out using the method of accumulation of assets, using the balance sheet data of the enterprise on the date of assessment (or on the last reporting date). Checking and adjusting the balance sheet accounts are carried out simultaneously with the inventory of the enterprise's property on the date of assessment. The inventory of the property of the enterprise is carried out in accordance with guidelines inventory of property and financial obligations. Simultaneously with the inventory of the enterprise's property, the market value of the land plot on which it is located and the current value of other assets are calculated.

Adjustment of the current value of assets. When calculating the liquidation value of the enterprise, it is necessary to take into account and subtract from the value of assets the costs associated with their liquidation. These are the administrative costs of maintaining the operation of the enterprise until the completion of its liquidation, commission payments, necessary taxes and fees, severance payments and payments, transportation costs for the sold assets, etc. The amount of money received from the sale of assets, cleared of associated costs, is discounted to the valuation date at an increased discount rate that takes into account the risk associated with this sale and the timing of the cash flow.

After adjusting the balance sheet asset items, it is necessary to adjust the balance sheet liability in terms of long-term and current debt. Particular attention should be paid to the settlement of preferred shares, tax payments, as well as the so-called contingent liabilities, which often arise as a result of ongoing or potential litigation. It is possible that in the course of the analysis of accounts payable it will be possible to negotiate on changing the conditions for repaying the company's debts.

After determining all the costs associated with the liquidation of the enterprise, the adjusted value of all assets of the balance sheet is reduced by the amount of costs associated with the liquidation of the enterprise, as well as by the amount of all liabilities of the enterprise. Thus, the value of the liquidation value of the enterprise is obtained.

abstract

By discipline: "Estimation of the value of the enterprise"

Subject: “Cost approach.

Residual value method"

Introduction……………………………………………….…..……………….…….3

1. Cost approach…………………………………………………………….….4

2. Definitions for the concept of salvage value……………………8

2.1 Salvage value method……………………..……………….9

2.2 Types of salvage value……………………..………………...9

3. Methods for assessing the salvage value……………………………….12

3.1 Algorithm for determining the liquidation value based on

accounting data on liabilities………………………………………..…12

3.2 Algorithm for determining the liquidation value based on

accounting data on the asset…………………………..………………..14

Conclusion……………………………………………………………………… 16

Bibliography…………………………………………………..………………..17

Introduction

a) orderly liquidation

b) forced liquidation

The salvage value is the market value of the appraised property minus all costs associated with its sale, including commissions for sale, advertising costs, storage costs, etc.

1. Cost approach

Cost approach - a set of methods for estimating the value of an object based on determining the costs necessary for the reproduction or replacement of an object, taking into account its wear and tear.

The cost of manufacturing an object and its subsequent implementation is very important factor in value formation.

Cost approach methods imply a mandatory assessment of the possible full cost of manufacturing an object and other costs incurred by the manufacturer and seller. These methods are indispensable when it comes to objects that are practically not found on the open market and are made to order, including special and unique equipment.

When evaluating by the cost approach, the process of forming the seller's price (offer) is modeled, as it were, based on considerations of covering all costs incurred by the price and obtaining sufficient profit. Since cost approach methods often do not proceed from real prices for similar objects, but from calculated standard costs and standard profits, they, strictly speaking, give an estimate not of a purely market value, but of the so-called value of an object with a limited market.

Cost valuation methods can be divided into:

Resource-technological models of assessment;

Normative-parametric models;

Index methods of evaluation;

Resource-technological models of assessment. In general, a typical resource-technological model can be described as follows:

Compared to the assessment of the object as a whole, its assessment based on the resource-technological model allows more accurate consideration of the impact of the configuration of the object and, consequently, the composition and values of its technical characteristics, on the value of the cost. However, in this case, the center of gravity is transferred to the assessment of the cost of its components and assemblies, which is justified only if there is a developed market for these components. Such a market exists so far only in the field of office and computer equipment.

Normative-parametric models. In contrast to the resource-technological model, in the normative-parametric cost of the assessed object, it is considered as a function of the totality of its technical characteristics, and not components.

In general, a typical normative-parametric model can be described as follows:

With

AT- specific (per unit of productivity or power) cost of the base product;

D– power or performance of the object being evaluated;

K- a summary coefficient characterizing the dependence of the unit estimated cost or price of the product on the value of the parameters. It is equal to the product of partial coefficients that take into account the influence of the relevant parameter on the estimated cost or price of the product;

Regulatory-parametric models have been successfully applied in the development of a number of wholesale price lists that can serve as a source of relevant regulatory information.

Index Methods of Evaluation. Often, as part of the cost approach, the index method is used. The use of price indices for many appraisers is one of the simplest and most effective (especially in mass valuation) ways to solve valuation problems. Price indices are relative indicators that reflect the dynamics of price changes. In many countries, state statistical bodies publish indices of domestic and foreign trade prices for individual goods and commodity groups. Price indices are always given with an indication of the base year in which the index value is assumed to be 100% (or = 1).

In general, the corresponding model is described as follows:

With- the desired value of the object of assessment;

Co - the base cost of an item, such as its full replacement cost contained in statistical report on the results of the previous revaluation of fixed assets;

I- index (chain of indices) of price changes for the relevant group of machinery and equipment for the period between the date of assessment and the previous revaluation of fixed assets.

The basis for calculating domestic wholesale price indices is not the prices of specific transactions, but mainly nominal prices. Therefore, published indexes provide only an approximate picture of the dynamics of list prices, and not the prices of actual transactions. Depending on the current situation, the terms of the transaction, including the terms of payment, sales volume, specific prices will differ to some extent from the list prices.

Price indices are an important indicator that allows you to identify the main trends in price movements. They are widely used in the analysis and forecast of market conditions, making it possible to assess the changes that have occurred in the price level over a number of years. True, it must be borne in mind that the index, as an average and relative indicator, as well as the unit value, does not give a sufficiently accurate idea of the changes that have occurred in the prices of any particular product. With the help of indices, it is possible to identify the dynamics of prices for the products of entire industries or, in extreme cases, any product groups. The indications of such a group index may differ from the price dynamics of the goods included in this group with specific quality indicators. However, the calculation using the index method can distort the estimated value for a number of reasons. We list some of them:

The result depends on the accuracy of determining the historical cost;

Difficulty finding a suitable index row;

Uncertainty of relative weights when deriving indices;

Index deprecation;

Accumulation of errors.

The procedure of the cost approach begins with the collection and analysis of information about the internal structure of the object, its structure and the composition of the main elements. At the same time, one technical specifications not enough, a detailed description of the design, drawings is required general view and specifications. A thorough inspection of the object is also carried out.

In the methods of the cost approach, an important role is also played by the assessment of the degree of depreciation of the object being evaluated, this is explained by the fact that the cost of reproduction or the cost of replacing the object obtained at the beginning does not take into account depreciation, and only at the next stage the resulting cost estimate is adjusted for the actual depreciation of the object (physical, functional and external) .

2. Definitions for the concept of salvage value

One of the following assumptions is usually used to determine salvage value:

a) orderly liquidation(Orderly Liquidation): sale of assets within a reasonable period of time necessary to obtain the highest price for each of the assets sold;

b) forced liquidation(Forced Liquidation) involves the sale of assets as quickly as possible, for example, at an auction (the liquidation value in a forced liquidation is often called the auction value - Auction Value).

The salvage value includes not only the method of sale, but also the costs of the sale, the costs of maintaining assets until the sale and other costs. Usually, though not always, when valuing an absolute controlling interest in a shareholding, the salvage value represents the lowest limit of value.

2.1 Residual value method

The salvage value is the market value of the appraised property minus all costs associated with its sale, including commissions for sale, advertising costs, storage costs, etc.

The salvage value may vary depending on whether the sale is urgent or occurs in the normal course of business. In the latter case, the salvage value will be close to the true market value less costs.

The problem of liquidation value appears when an organization is deprived of economic and organizational opportunities to independently generate value, primarily surplus value, while retaining financial, economic, labor obligations recognized by law to other subjects of civil circulation.

The liquidation value is the net amount of money that the owner of the enterprise can receive when the enterprise is liquidated and its business is closed, the separate sale of assets and after settlements with all creditors.

2.2 Types of salvage value

There are three types of salvage value:

· Orderly, when the sale of the assets of the liquidated enterprise is carried out within a reasonable period of time so that the highest possible selling prices of the assets can be obtained;

· Forced, when the company's assets are sold as quickly as possible, often simultaneously and at the same auction;

· The cost of the termination of the existence of the assets of the enterprise, when the assets of the enterprise are not sold, but written off and destroyed. The value of the enterprise in this case is a negative value, since in this case certain costs are required for the destruction of tangible assets.

The sequence of work on the calculation of the orderly liquidation value of the enterprise, i.e. the value that can be obtained in the orderly liquidation of the enterprise's business, is as follows:

· Development of a calendar schedule for the liquidation of the company's assets.

· Calculation of the current value of assets, taking into account the costs of their liquidation.

· Adjustment of the current value of assets.

· Definition of size of obligations of the enterprise.

· Subtraction from the current (adjusted) value of assets of the value of the company's liabilities.

As a rule, it is assumed that the business of the enterprise is terminated and only the process of liquidation of the enterprise is carried out. The liquidation of a large enterprise takes about two years.

Calculation of the current value of assets is carried out using the method of accumulation of assets, using the balance sheet data of the enterprise on the date of assessment (or on the last reporting date). Checking and adjusting the balance sheet accounts are carried out simultaneously with the inventory of the enterprise's property on the date of assessment. The inventory of the property of the enterprise is carried out in accordance with the methodological guidelines for the inventory of property and financial obligations. Simultaneously with the inventory of the enterprise's property, the market value of the land plot on which it is located and the current value of other assets are calculated.

Adjustment of the current value of assets. When calculating the liquidation value of an enterprise, it is necessary to take into account and subtract from the value of assets the costs associated with their liquidation. These are the administrative costs of maintaining the operation of the enterprise until the completion of its liquidation, commission payments, necessary taxes and fees, severance payments and payments, transportation costs for the sold assets, etc. The amount of money received from the sale of assets, cleared of associated costs, is discounted to the valuation date at an increased discount rate that takes into account the risk associated with this sale and the timing of the cash flow.

3. Methods for assessing the salvage value

The direct method is based on a comparative approach and can be carried out either by direct comparison with analogues, or through statistical modeling (correlation-regression analysis). However, this method has limited applicability in Russian conditions due to insufficiency and inaccessibility information base at transaction prices under conditions of forced sale (including bankruptcy proceedings).

indirect method expressed in the calculation of the liquidation value of the object relative to its market value. It is carried out in three steps: calculation of the market value of the object, calculation of the discount for the forced nature of the sale of the object, calculation of the liquidation value of the object. In this work, we used this option.

3.1 Algorithm for determining the liquidation value based on accounting data for liabilities

This calculation is possible in several ways.

First option

This approach is suitable for calculating the liquidation value of an OJSC whose shares were quoted on a domestic or foreign stock exchange in the form of ordinary, preferred shares and American (global) depositary receipts by the time the calculation was ordered.

This approach assumes that it is required to calculate the total value of the entire property complex of the liquidated (reorganized) organization and that the organization is sold as a whole, and not in parts.

At the beginning of the calculation, the appraiser should understand the value of the price / profit ratio (P / E) that took place during the previous months of stock trading (presumably, it is rational to analyze the last three months). It is rational to accept the market prices of shares of a liquidated (reorganized) joint-stock company for the calculation of the liquidation value without additional adjustment if this coefficient for a given joint-stock company differs from the industry indicator by no more than 10%. For large negative deviations, you will need to introduce an additional reduction factor.

The liquidation value of the property complex is calculated on the assumption that the existing organization of production and management at the enterprise is being liquidated (replaced), but the technological ability to create value in cash, fixed and circulating assets, and labor remains.

Second option

It is assumed that the technological viability of the liquidated (reorganized) organization is preserved when the existing management is changed (or liquidated). It is further assumed that the asset is somehow cumulatively (cumulatively) valued and is required to determine the amount of net assets to determine the value of accumulated liabilities. Net assets will be determined as the difference between the estimated amount of the asset and the estimated amount of the organization's debts.

The main task is to determine the cost of debt, deducted from the estimated amount of the asset. The algorithm of this calculation can be represented by a set of the following actions:

a) calculate debts on loans and credits for the entire term of the debt according to the rules of discrete accumulation. The amount of compound interest debt is calculated as:

FV = P(1 + r)n, (2)

the amount of debt payable at a simple interest rate:

FV = P, (3)

where FV is the future value, that is, the amount of debt payable;

P - the amount of the principal debt;

r - the interest rate adopted in the agreement, in fractions of a unit;

n is the term for which the debt is accepted, in years, fractions of a year;

b) determine the amount of the debt for the rest of the liabilities accounted for as accounts payable either in the amount of a fixed nominal value, or, if the agreement or established rules provide for an additional payment of interest upon repayment of debts on time, - according to formulas (2, 3).

3.2 Algorithm for determining the salvage value based on accounting data for the asset

The liquidation value in the event of liquidation (bankruptcy) and reorganization of an enterprise (organization) and making a decision on its calculation through an assessment of the value of individual elements of the asset is subject to determination using sequential actions within the framework of a special procedure.

The adoption of such a decision means that the enterprise - the subject of assessment is no longer considered by the market (or the state) as an operating single organizational and technological complex capable of creating real value. Appraisers in the Russian Federation have at their disposal domestic methods for calculating the value of each of the elements of the accounting asset of an operating enterprise (an operating organization).

The liquidation value as an economic and appraisal category requires a number of additions to the well-known recommendations. First of all, when calculating the liquidation value, the appraiser is forced to focus more on the current, real prices of the material elements of the asset, and also take into account the conditions for the use of these production and non-production assets in a different way, not as it was in the liquidated enterprise (liquidated organization), otherwise. Similar we have shown in section 5. At the same time, the restrictions shown by us in section 1 regarding land, subsoil, etc., remain in force.

The initial information for calculations is contained in the balance sheets, accounting registers, accounts, inventory sheets. The balance itself needs, as a rule, analysis and clarification.

Conclusion

The cost approach has exceptional versatility; theoretically, any object of technology can be evaluated by this approach. With the cost approach, the sum of the costs for the creation and subsequent sale of the object is taken as a measure of cost, i.e. its cost.

The salvage value may vary depending on whether the sale is urgent or occurs in the normal course of business. In the latter case, the salvage value will be close to the true market value less costs.

The liquidation value of the appraised object can be calculated by direct or indirect method.

The direct method is based on a comparative approach and can be carried out either by direct comparison with analogues, or through statistical modeling (correlation-regression analysis).

The indirect method is expressed in the calculation of the liquidation value of the object relative to its market value.

Bibliography

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