Bsc.

RESEARCH QUESTIONNAIRE

Dear respondent,

I am an undergraduate student of the University of Lagos currently

conducting a research on the topic: Valuers’ Perception of
Depreciation and Obsolescence in Plant and Machinery valuation
in Lagos metropolis. It is purely an academic exercise and I would be
grateful if you would oblige me your objective response to the question
asked below. Be assured that all information given would be treated with
utmost confidentiality.

Thank you.

OYEWUNMI GBENGA KELVIN

SECTION ONE: SURVEYORS AND FIRM DETAILS (please tick

appropriately)
1.Name of firm (Optional).........................................................

2. How long has your firm been in practice?

1.5 yrs ( ) 6-10 yrs ( ) 10-15yrs ( ) 16-20 ( ) above 20yrs (

)

3. What is the average academic qualification of your surveyors?

ND ( ) HND/Bsc. ( ) Msc. /MBA ( ) B-Tech ( ) others, please

specify.........

4. What is your staff strength?

1-5 ( ) 6-10 ( ) 11-20 ( ) 21-30 ( ) 31-40 ( ) above 40 ( )

5. How many of your surveyors are elected members of NIESV?

Btw 1-5 ( ) btw 6-10 ( ) 10 -15 ( ) 16 and above ( ) none ( )

6. Which national or international organization does your firm belong

to?

RICS ( ) NIESV ( ) IVSC ( ) CASLE ( ) NONE ( ) others ( )

 7. How often does your firm or organization attend seminars,
CPD/workshop/training programme? Often ( ) very often ( ) not
often ( ) rarely ( )

8. What are your areas of specialisation/practice?

Agency ( ) Management ( ) Consultancy ( ) Feasibility and

Viability ( ) Valuation ( ) All ( )

9. Does your firm carry out plant and machinery valuation (P&M)?

Yes ( ) No ( )

10. If yes, how many times has your firm carry engage in P& M
valuation exercise this year?

1-5 times ( ) more than 5 times ( ) less than 10 times ( ) more

than 10 times ( )

SECTION TWO: SURVEYORS APPROACH TO VALUATION/PROBLEMS

ENCOUNTERED

11. Please rank the following methods according to their

frequency of use in P&M valuation

S/NO. METHODS FREQUENTL RARELY NOT

Y USED

1. COST
METHOD

2. INVESTMENT
METHOD

3. DIRECT
COMPARISO
N

4. PROFIT
METHOD

5. INDEXATION
 6. SCRAP/SALV
AGE VALUE
ANALYSIS

12. In your own opinion which of the methods identified above do

you consider most suitable for plant and machinery valuation?

Cost method ( ) Indexation ( ) Direct comparison ( )

Scrap/salvage value analysis ( ) Income approach ( ) Profit
method ( )

13. Kindly give reason(s) for your response in question 12 above

Logicality ( ) transparency ( ) objectivity ( ) convenience ( )

others (please specify)............................................

14. Are you aware of the concept of depreciation and

obsolescence? Yes ( ) no ( )

15. If yes, what is the degree of importance of the following in

P&M valuation?

S/NO DEPRECIATION& VERY IMPORTA NOT I DON’T

OBSOLESCENCE IMPORTA NT IMPORTA KNOW
FACTORS NT NT

1. Wear and tear

2. Physical
 deterioration

3. Technological
obsolescence

4. Economic
obsolescence

5. Functional
obsolescence

16. Please how do you perceive the following under listed issues
in P&M valuation?

S/N ISSUES VERY IMPORT NOT I

O IMPORT ANT IMPORT DON’
ANT ANT T
KNO
W

1. Determination of
depreciation

2. Assessment of
obsolescence

3. Reliability of
methods adopted

4. The judgement of
the valuer.

5. Reliability of
information given
by the client

SECTION THREE: DEPRECIATION AND OBSOLESCENCE IN

PLANT AND MACHINERY VALUATION
17. Please kindly indicate your opinion on the following
underlisted statements?

SA= STRONGLY AGREE, A= AGREE, D= DISAGREE, SD= STRONGLY

DISAGREE,

U= UNDECIDED

S/N STATEMENTS S A D SD U
O. A

1. Depreciation is loss of value due to wear

and tear only.

2. Obsolescence is simply a condition of

physical deterioration.

3. Obsolescence is much more than

physical deterioration.

4. Technological and functional

obsolescence are the same thing.

5. Economic obsolescence is the same as

external obsolescence.

6. Depreciation is a loss in value due to any

cause.

18. How do you classify the following obsolescence?

• Loss of value due to change in technology :

Technological obsolescence ( ) Functional obsolescence ( )

Economic obsolescence ( )

• Loss of value due to reduction in demand for the product

produced by the machine:Technological obsolescence ( )
Functional obsolescence ( ) Economic obsolescence ( )

• Loss of value due to change in legislation in the industry:

Technological obsolescence ( ) Functional obsolescence ( )
Economic obsolescence ( )

• Loss of value due to difference in design of newer similar

machines:

Technological obsolescence ( ) Functional obsolescence ( )

Economic obsolescence ( )

• Loss of value due to decreased productivity of the machine

Technological obsolescence ( ) Functional obsolescence ( )

Economic obsolescence ( )