ASSET VALUATION: A veritable and useful Global tool for the Investigation of Economic and Financial Crimes.

Oru Leonard

E  I. Okim,

From the professional point of view, asset valuation can be defined as the process of ascertaining the present economic or market value of an asset.

Valuation of assets is a continuous business development strategy as business is operated with assets and liabilities, and is subject to tear and wear over time.

From the estate surveying and valuation point of view, assets in this regard include lands, buildings, roads, economic trees, plant and equipment. Others are: goodwill of the business or individual being evaluated, bridges, and farm lands, intellectual properties, just to mention a few.

For a business concern, continuous valuation of its assets is a sine-qua-non as valuation reports are used for so many business purposes in the Nigerian and global business environment. For instance, and under normal circumstances, no business entity can access credit facilities from a commercial bank without a valuation report as carried out by a licensed estate surveyor and valuer.

In the bidding and pitching of contracts by businesses, irrespective of the sector, valuation reports provided by the business concerns is a sure way of ascertaining the economic viability of the firm, among other things.Asset valuation reports, no doubt, are useful global tools for investigation for economic and financial crimes.

Individuals and business entities with a clean slate – tax and valuation documents are easily investigated by anti-graft agencies like the Economic and Financial Crimes Commission (EFCC).

Valuation reports are also very important when you are doing a targets balance sheet viz-a-viz his income and assets possession with a view to determine his or her real/ true worth. Valuation reports are useful tools for financial analyses and investigation.

A clean balance sheet will quicken financial investigations and reporting, and this can only be made possible if there is a clean and up-to-date market value valuation report. Valuation reports are also very important when properties are set for auctioning.

In financial crimes investigation, there is every need to use the current market price of the assets of the company or individual being investigated; this is because property valuation is being affected by a number of factors like foreign exchange rate, inflation, interest rate, market stability, security, amongst other factors.

For the Nigerian anti-graft agency – the Economic and Financial Crimes Commission (EFCC), asset valuation reports will remain a veritable tool for carrying out financial investigations of all kinds. Proceeds of crime are often invested in movable and immovable properties, as we have seen in recent times mostly in land and landed properties. So, to conduct a thorough and successful investigation, you are required to ascertain the market value of such properties as this will enable you to trace or what we call follow the money to where it is invested, having value in mind. In all, businesses should strengthen their documentation processes through effective and up-to-date valuation reports.

With this development, transparency is assured, and partnership with organizations for facilities, and loans is guaranteed. Valuation reports are like performance reports for asset declaration for government agencies like the EFCC. A good valuation report is both beneficial to the internal and external stakeholders of business enterprises.

ESV Effa Imoh Okim, RSV,PMP, CFE, ACIN, is a registered Estate Surveyor and Valuer, works with the Economic and Financial Crimes Commission (EFCC).