Depreciation Valuation Services International, inc.
1444 Windsor Road   
Teaneck, NJ 07666
USA
Phone: (866) 597 2467
Fax: (866) 597 2467
E-mail:  joel@columbia.edu j.breitling@comcast.net

 

Depreciation Valuation Services International Inc. (DVS International Inc.) is a consulting firm offering Depreciation Studies, Valuations, Educational Seminars, Expert Testimony, and its Depreciation/Valuation-Projection PC Software System v. 3.10 (DVS 3.10.) DVS International Inc.'s personnel are well educated, experienced and tested individuals who posses decades of applicable and direct knowledge in their areas of responsibility.

DVS International Inc. offers to conduct depreciation studies and to provide an expert witness to testify to them before Regulatory Commissions or other authorities, if required. We also offer to conduct cost based property valuations for ad valorem or other property taxes, condemnation, insurance and financial purposes and to testify to such valuation and before taxing authorities and courts.

Thank you for your interest in DVS International. If you have any questions about our services or products, please call Joel Rosenblatt at the number listed.

Joel Rosenblatt and Julius Breitling


The following is a description of the services provided by DVS International.

DEPRECIATION STUDIES

General Objectives of a Depreciation Study

  • To recommend appropriate annual depreciation rates to be used for accounting and rate making purposes.
  • To determine the adequacy of the accumulated provision for depreciation.
  • To recommend a method for the disposition of the differences between the calculated depreciation requirement and the accumulated depreciation per books, if any is determined to exist beyond acceptable limits.
  • In some instances, the allocation or reallocation of the accumulated depreciation per books.

Items (2) and (3) are usually not required when the direct remaining life technique is utilized.

General Depreciation Study Approach

The general tasks of a depreciation study normally include:

  • Analyses of a utility's historical plant accounting data to ascertain the average life, mortality dispersion and net salvage experienced by the company for each class of depreciable property.
  • Inspections of representative samples of the property to gain familiarity with the property, ascertain its condition and/or specific problems, if any, which may exist.
  • Meet and have discussions with the company's management, system planners and engineers to ascertain future plans and programs which could affect the various types of property and therefore, the future expectancy with regard to the average life, mortality dispersion and net salvage, as well as the service life (life span) for site specific property such as generating stations, or other major situs properties.
  • Make a decision as to the expected average life, mortality dispersion , and net salvage for each class of depreciable property, as will as the expected life spans, that is the retirement date(s) of generating stations, or other major situs properties.
  • Calculate the appropriate depreciation rate for each class of depreciable property giving consideration to the expectancy of each depreciable property group to live a full cycle; or have a fixed retirement age or date; as well as, the utilization of alternative straight line method depreciation procedures and techniques.
  • Determine the average remaining life of the property in each depreciable group.
  • Calculate the depreciation requirement for each depreciable group and test the adequacy of the accumulated depreciation per books, as of the date of the study.
  • If necessary, make a recommendation as to the disposition of the difference between the calculated depreciation requirement and the accumulated depreciation per books, if the test indicates that such differences are beyond acceptable limits.
  • In some instances the allocation, or reallocation, of the accumulated depreciation per books may be necessary, or appropriate.

The specific scope of services to be provided to your company will be presented upon receipt of a request for a proposal and the extent of the property for which the proposal is to be made.

VALUATIONS

Valuations of utility property provided for various purposes including, but not limited to:

  • Fair Value or Rate Base purposes in Fair Value Regulatory Jurisdictions.
  • Fair Market Value for Purchase, Sale, Sale/Lease-back and similar transactions.
  • Fair Market Value for Ad Valorem and Special Franchise or other property taxes.

These valuations will generally be made using the cost approach, predominantly the reproduction cost new less depreciation approach giving due consideration to:

  • Physical Depreciation - Curable
  • Physical Depreciation - Incurable
  • Functional Obsolescence - Curable
  • Functional Obsolescence - Incurable
  • External/Environmental Obsolescence (generally deemed incurable)

 
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