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American Society of Appraisers

Q & A – ASA & AIC Partnership
  1. What is the American Society of Appraiser (ASA)?

The American Society of Appraisers (ASA) is a multi-discipline, non-profit, international organization of professional appraisers representing all appraisal disciplines: Appraisal Review and Management, Business Valuation, Gems and Jewelry, Machinery and Technical Specialties, Personal Property and Real Property.

ASA is the acknowledged leader in machinery and technical specialties (MTS) appraising and includes members who perform market or liquidation value appraisals for various purposes such as sale, acquisition, ad valorem tax, eminent domain, collateralization, insurance or residual forecasting.

  1. Why is AIC developing a partnership with ASA?

AIC and ASA are leading valuation organizations that have a very similar mandate – to provide their members with quality, world-renowned, discipline-based education programs that will help them succeed within the valuation profession. 

Recently, an appraisal standard to appraise machinery and equipment was added to AIC’s CUSPAP. To ensure that AIC members receive the best education regarding machinery and equipment valuation, AIC partnered with ASA to give members the opportunity to access to ASA’s established and renowned Machinery and Equipment Valuation Program at the same discounted price as ASA members.

This partnership will help AIC Members to develop competencies in machinery and equipment valuation that will diversify their experience and practice, expand their network within the Machinery and Equipment specialties and continue to be Canada’s professional appraisers of choice.

With this partnership, AIC members will also receive guaranteed Continuing Education Courses (CPD) credits if they successfully complete ASA courses.

  1. What do AIC Members need to do to become competent and qualified in the valuation of machinery and equipment?

AIC members may choose to complete the ASA’s Machinery and Equipment Valuation Program as one way to achieve the competency necessary to do this work. They may also take other educational offerings and / or pursue additional machinery and equipment work experience with another AIC Designated Member that has competency in this area.

AIC members must adhere to the competency provisions of CUSPAP (and also adhere to the Machinery and Equipment Appraisal Standard.   

  1. What courses are in the Machinery and Equipment Valuation Program?

ASA’s Machinery and Equipment Valuation Program offers four (4) specific courses[1] including:

ME201-000 – Introduction to Machinery and Equipment Valuation

This course will introduce appraisal terminology and concepts and provide students with a solid foundation for a career in appraisal of machinery and equipment. This course covers MTS appraisal terminology; functions and purposes of appraisals; introduction of the three approaches to value; depreciation and factors affecting depreciation; field inspection techniques and safety; introduction to the issues of indexes in machinery and equipment appraising; basic pricing exercises for current and obsolete assets; and ethics and professional standards.

ME202-000 – Machinery and Equipment Valuation Methodology

This course explores in depth the ideas introduced in MTS201 and provides students with a better understanding of the types of value commonly used in the appraisal of machinery and equipment. This course addresses the issues of price vs. value, indirect costs, use of and development of indexes, age-life concepts, recommended rounding of figures, types of values for MTS appraisals, reproduction cost new, replacement cost new, replacement cost depreciated, fair market value in use, orderly liquidation value, forced liquidation value and supporting conclusions for various purposes.

ME203-000 – Advanced Topics and Case Studies

This course will introduce more advanced concepts and techniques than those taught in ME201 and ME202. A review of case studies illustrating a range of operating entities will be employed. This course will explore exponential pricing techniques, cost estimation, reproduction vs. replacement costs, quantifying functional obsolescence, use of research data, time value of money calculations and more.

ME204-OOO – Machinery and Equipment Valuation – Advanced Topics and Report Writing

This course provides a comprehensive review of the concepts studied in ME201, ME202 and ME203. It reviews the application of appraisal techniques in valuing an integrated facility (steel mill) and considers various professional standards including USPAP, IVS and Ethics and their relationship to report writing. It also discusses how to develop and write a professional appraisal report. This course takes an in-depth look at the skills needed to address issues of obsolescence (physical, functional and economic), and finally, the course will provide students with the tools for analyzing the following items and ways to apply these appraisal concepts in their day-to-day practice:

  • Inutility;
  • Complex Leasing Structures;
  • Residual Forecasting;
  • Fair Rental Calculations (for Leasing); and
  • Valuing facilities using all three approaches to value.
  1. Are AIC members covered by its Professional Liability Insurance Program is claims arise from a machinery and equipment appraisal?

If members have acquired the necessary competence and have followed the CUSPAP Machinery and Equipment Appraisal Standards their work will be covered under the AIC’s professional liability insurance program.

  1. What are the direct benefits to AIC members?

 

  • AIC Members will have an opportunity to expand their scope of practice within a field that has a significant amount of demand.
  • AIC Members will receive guaranteed CPD credits for successfully completed ASA courses.
  • AIC Members will receive the ASA’s “Member” price for all ASA
  • There is an opportunity to collaborate on initiatives that are of mutual interest to AIC members and ASA members.
  • AIC members and ASA members will receive pertinent information about each
  • AIC and ASA will promote each other’s organizations, members and their respective roles in Canada’s real estate industry.
  • AIC and ASA will work together to build a strong relationship in order to promote and enhance the development of the machinery and equipment valuation and related professions as well as to advocate on issues that affect both organizations.
  1. Will AIC members automatically become a member of ASA and obtain their AE and ASA designation?

No, AIC members who complete the ASA’s Machinery and Equipment Valuation Program do not become ASA designated members. There are additional requirements and fees associated with becoming an ASA member with an AM (Accredited Member) or Accredited Senior Member (ASA) designation.

The education partnership between AIC and ASA is primarily for the purpose of providing quality machinery and equipment education at a reasonable cost for AIC members.

For more information on achieving these designations, please visit www.appraisers.org.

  1. How are the courses delivered?

Currently, ASA courses are delivered in classrooms across the United States, while some are delivered via home study options or online. AIC is working with ASA to bring classroom sessions to AIC Members within Canada.

For more information, go to the ASA ME website for a complete list of courses being offered and the options for delivery.

  1. What is the cost of an ASA course?

For one three-day ASA course within the Machinery and Equipment Valuation Program, the cost is $1,795 USD. With the ASA and AIC partnership agreement, this rate is discounted to the member rate of $1, 195 USD enter ASAME2016 in the AIC membership number field box

  • How do I record the credits I receive from an ASA course?

As with other successfully completed CPD courses, AIC Members can go to their Member Profile page, click on the Continuous Professional Development link in “My Status” and follow the links to insert their credits.

  • How many AIC CPD credits will I earn for each ASA course?

A maximum of 12 CPD credits will be granted for each course.

  • Who do I contact for more information?

Please contact AIC at if you have any questions regarding registration or recording of ASA course credits.

[1] The source of this information is from the ASA website, the www.appraiser.org .

ASA Newsletter

CBRE

International Property Tax Institute (IPTI)

International Right of Way Association (IRWA) 

International Valuation Standards – Effective 31 January 2022

International Valuation Standards Council (IVSC) – Newsletters

Journal of Property Tax and Administration 

The Appraisal Institute (USA)

The European Group of Valuers’ Associations (TEGoVA) – Newsletters