IVS 300: Valuing Plant, Equipment and Infrastructure in Family Law Business Valuations

DB Forensic
Mar 18
3 min read

Updated: Apr 15

Plant and equipment valuation for family law business disputes under IVS 300 standards

In many family law property disputes, the focus quickly turns to the value of a business. While attention is often given to profits, goodwill, or property, another category of assets can significantly affect the outcome of a settlement: plant, equipment and infrastructure.

These assets can include manufacturing machinery, construction equipment, vehicles, specialised tools, or even large infrastructure systems used in a business. Determining their true value is not always straightforward, particularly when the business relies on these assets to operate.

This is where IVS 300 Plant, Equipment and Infrastructure becomes important. It provides guidance on how these physical assets should be assessed during a valuation.

Understanding how these assets are valued can help ensure property settlements are fair, transparent and supported by reliable financial evidence.

What IVS 300 Covers

IVS 300 focuses on the valuation of tangible operational assets used by a business. These are typically items held for production, service delivery, rental or administrative purposes and are expected to be used over time rather than sold immediately.

Examples may include:

Manufacturing machinery
Construction equipment
Company vehicles
Industrial production lines
Energy or transport infrastructure
Equipment used to provide services within a facility

Infrastructure assets can be particularly complex because they often form part of a wider system or network. Their value may depend heavily on how they function within that system rather than as individual items.

In family law matters, these assets often represent a substantial portion of a business's value, especially in industries such as manufacturing, construction, logistics or agriculture.

Why Valuing Plant and Equipment Is Complex

Valuing plant and equipment is rarely as simple as looking at the purchase price or the amount shown in the accounting records.

Several important factors influence value, including:

1. How the asset is used

Many assets have greater value when used together as part of an operating production line rather than sold individually.

2. The premise of value

The value can vary significantly depending on whether the asset is valued as part of a running business, sold in an orderly sale, or forced into liquidation.

3. Whether the asset can be moved

Some equipment is permanently installed or integrated into buildings or infrastructure. Removing it may reduce its value significantly.

4. Obsolescence and market demand

Technology changes quickly. Equipment that was highly valuable five years ago may now be outdated or inefficient.

These factors must all be considered to determine the true economic value of the asset.

Valuation Methods Used for Plant and Equipment

IVS 300 allows valuers to apply three main valuation approaches depending on the nature of the asset and available data.

Market Approach

This approach compares the asset to recent sales of similar machinery or equipment in the marketplace. It works well when there are active markets for comparable assets.

Income Approach

This method considers the income the asset helps generate within the business.

Cost Approach

This estimates what it would cost to replace the asset with a modern equivalent, adjusted for wear, age and obsolescence.

Selecting the correct method depends on the asset type, market data available, and the purpose of the valuation.

The Role of Forensic Accounting in Asset Valuations

In family law disputes, plant and equipment valuations can become contentious.

One party may argue the assets are worth far less due to depreciation or limited resale value, while the other may argue they are essential to the business and therefore highly valuable.

Forensic accountants help resolve this by:

Identifying all relevant business assets
Assessing how assets operate within the business
Reviewing purchase history, depreciation and condition
Investigating market evidence and replacement costs
Preparing independent expert valuation reports

DB Forensic works closely with family lawyers and clients to provide clear, defensible valuations of plant, equipment and infrastructure.

Our reports help ensure that these assets are properly recognised in the overall business valuation and fairly considered during property settlements.