It takes a particular skill set to properly conduct an appraisal of tangibles assets, and intangible assets, for the purpose of ASC 805 / ASC 350 (formerly SFAS 141 / SFAS 142). Tangible assets include inventory, real property and personal property (personalty). Intangible assets comprise trade names, patents, customer base, assembled work force, and possibly many others. This essay addresses the valuation of personalty, and why such a professional work effort is not an appraisal commodity. Addressing the skill sets required, certainly the requirements vary depending upon the nature of the assets, for example a machine shop vs a paper mill. Assuming the assignment is realtively complex, at a mid-point of difficulty compared to the machine shop and paper mill analogy, the appraiser / valuer should understand the following: • Accounting, fixed assets and financial reporting • Appraising, inter-discipline personalty value concepts, intra-discipline knowledge of real property and intangible asset valuation and their relationship to the personalty • Engineering, the relevant chemical, civil, electrical / electronic, or mechanical disciplines • Tax, fixed asset accounting, real vs personal property The appraisers / valuers most qualified to handle such assignments today are found in the major national and regional accounting firms, to varying degress, and in the national and regional multi-disciplined appraisal and valuation consulting firms. The required skill sets are not found in the auction type appraisal companies or with a local single discipline machinery and equipment appraisal firm. The following appraisal considerations, which we consider proprietary for the benefit of our clients, are generally described as follows: • Review initially the financial and/or tax reporting requirements of the subject company • Review the curret fixed asset accounting system and decide with company representative(s) / auditors to keep, modify, update, discard or building a new data file • Apply the correct value concept, value in continued use of the integrated plant facility and not value in exchange of individual assets • Analyze what are buildings vs personalty (particularly critical if tax allocation) • Appropriately apply engineering costs to production lines, as well as overall plant design • Value support assets in continued use (mechanical and electrical systems) • Appraise special assets such as dies, molds, jigs, fixtures, templates, etc. • Value leasehold improvements, if necessary • Value specified assets at Net Realizable Value if purchased for sale • Value specified assets under the Not in Use category • Apply in the valuation analysis excess capital cost, physical deterioration, functional obsolescence and economic / external obsolescence • Ably and knowledgeably interact (on the appraisal, financial reporting and/or tax reporting levels) with the external auditors reviewing the appraisal