Originally Posted by
Sunfish
The technical accounting side:
- how do you value an AOC?
The depreciated value of the cost of establishing it plus the annual cost of maintaining it. Or its replacement cost. Dealer's choice.
Originally Posted by
Sunfish
- The fitout of a leased terminal?
The depreciated capitalised value of the fitout.
Originally Posted by
Sunfish
- A refurbished set of turbine blades?
In accordance with your Asset Spares Valuation policy, typically Current hours x [(New Replacement Cost less Scrap Value)/Life Hours] for an individual item or the aggregated annual average for the entire stock holding.
Originally Posted by
Sunfish
- An integrated drive generator - a rotable.?
Again, in accordance with your Asset Spares Valuation policy, calculated along the lines for the refurbished blades except that hours might be swapped out for the number of refurbishments between new and scrapped if that was a more realistic measure.
Originally Posted by
Sunfish
-GSE including the workstands?
The depreciated capitalised value.
Originally Posted by
Sunfish
I know there are standards but I’m not sure there are many people who can apply them to airlines.
That is all bread-and-butter stuff for a maintenance asset accountant. Hell, they manage this sort of stuff on oil rigs and at mines sites out the back of beyond, its application at an airline is not that difficult. These days the asset values are tracked and calculated by the maintenance inventory management system.
Originally Posted by
Sunfish
The winner in this contest knows the true vale which I contend is likely to be much more than Bains offer.
......Yes I know, the value of a thing is what it will.....
The asset valuations - book values - are frankly only meaningful if you're looking at winding a business up. Otherwise it's interesting but somewhat academic because for a going concern the determinant of the business's aggregate value is what it can make for you. And that is generally reflected in the business's market cap. That is one of the reasons that prior to the coronavirus crisis Virgin had a book value that was underwater but a market cap of $725-odd million.
But at the end of the day, as I drummed into anyone who'd listen,
the market is the final arbiter of value. What's something worth? Only what someone else is willing to pay for it.