The value evaluation of real estate, facilities and equipment of the Electric Power Industry of Bosnia and Herzegovina and corporate enterprises (CE) founded by PE Bosnia and Herzegovina, were conducted in accordance with the International Accounting Standards (IAS), the International Evaluation Standards (IEA) and the International Financial Reporting Standards (IFRS).
The Subject of evaluation were all Hydro power plants (HPPs), HPP equipment and civil engineering structures, Thermal Power Plant (TPP) and TPP equipment and civil engineering structures, Equipment and Civil engineering structures for power distribution infrastructure, commercial buildings, Land, Management and other buildings serving for office activities, etc.
The approach used in evaluation is a combination of cost and revenue-based methods in order to ensure maximum accuracy possible.
Cost based method is represented by Replacement Cost New (RCN) methodology, which is one of the approaches used for determination of Depreciated Replacement Costs (DRC) using the replacement costs of assets and their virtual depreciation.
Revenue method is represented by Discounted Free Cash Flow (DFCF) methodology, which is one of the approaches used for determination of economic value of an asset / enterprise using estimations of future business results.
Services provided
- Valuation of fixed assets
Client
PE Electric Power Industry of Bosnia and Herzegovina
