Illustrative Example

Given: Based from the data contained under the Inventory and
Inspection Report of Unserviceable Property (Annex A1)
Property Description:
Mitsubishi L-200 D/Cab Pick-up, Diesel Fed Model
1995, Silver Gray, Loaded, w/Stepboard & Bedliner
Plate No. UFC 963, Engine No. 4D56A-D5940
Chassis No. K14TJUNSL-010751
Acquisition Date: AD = December 16, 1995
Acquisition Cost: AC = P495,000.00
Date of Appraisal: June 26, 2000

ANNEX C1
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type Mitsubishi L-200 Prop.No. Plate No. UFC - 963
Unit Serial No.
Engine Serial No. 4D56-D5940
K14TJUNSL-010751
Acquisition Cost
Date
P 495,000.00
December 16, 1995
Date Reported as Unserviceable _____________________________________
Subject property
LEGEND:
S=
M=

Serviceable
Missing

X =
NA =

ENGINE:
Operating Condition
Injection Pump Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto
Distributor Assembly
2/cap , rotor
Wiper Assembly
Headlight Assembly
Stop & Tail Light Assy.

Unserviceable
Not Applicable

SUSPENSIONS:
S
S

FrontSpringAssembly
RearSpringAssembly

S
S

WHEELS:

S
S
S
S

Tires Front
Tires Rear
Spare Tire

S
S
S

NA
NA

PROPELLER SHAFT ASSY.:

NA
4

Front
Rear

NA
S

DIFFERENTIAL ASSY.:
Front
Rear

NA
S

NA

S
S

FINAL DRIVE

NA
NA

Sprocket Assembly
Drive Chain

NA

UNDERCARRIAGES:

NA

NA
NA

S
S

Track Link Assembly

Idler Assembly

NA
NA

Directional Light Assy.

(front & rear)
Battery
CLUTCH ASSEMBLY
CUSHIONS:
Front Seat
Rear Seat
Operators Seat
GAUGES:
Hour/Service Meter
Speedometer
Tachometer
Temperature Gauges
(water)
Oil Pressure Gauges
Converter oil Temperature
Gauges
BRAKE SYSTEM:
Master Cylinder Assembly

S
S
S

Track Adjuster Assy.

Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER
BODY/CAB/FENDERS

NA
NA
NA
NA
S

WINDSHIELD (Front)
FUEL TANK ASSEMBLY
HYDRAULIC SYSTEM:
Hydraulic Pump Assembly
Hydraulic Motor Assembly
Hydraulic Hoses
Control Valve Assembly
Hydraulic Cylinders

S
NA

S
S
S
NA
S
NA
S
S

TRANSMISSION ASSEMBLY S
NA

TRANSFERCASE ASSEMBLY NA
WINDSHIELD (rear)
S
FUEL TANK ASSEMBLY
S

STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Cutting Edges
Dragline Bucket
Backhoe Bucket
Fairlead assembly
(for crane)
Compressor
Boom Assembly
Lifting Block

NA
NA
NA
NA
NA

NA
NA
NA
NA
NA
NA
NA
NA

Riper Assembly
End Bits
Clamshell Bucket
Ditching Bucket
Tagline Assembly
(for crane)
Cables
Boom Pulley
Others

NA
NA

NA
NA
NA
NA
NA
NA

REMARKS:
Fuel Injection Assy - for minor overhaul
Left Rear Side & Rear Bumper - with dents and scratches
Body of unit needs paint wash-over

Odometer Reading = 69,000

kms

Inspected by:

JUAN DELA CRUZ

(NAME)

Sr. TAS

(DESIGNATION)

ANNEX C2
CHECKLIST FOR UNSERVICEABLE EQUIPMENT:
VEHICLES/HEAVY EQUIPMENT
Equipment Description/Type L-200 1995 Model Prop.No. Plate No. UDR - 680
Unit Serial No. K14TYPSDE-839716 Engine Serial No.4D56-D6785
Acquisition Cost
Date
P 495,000.00
October 19, 1995
Date Reported as Unserviceable __Comparable Property_____
LEGEND:
S=
M=

Serviceable
Missing

X =
NA =

ENGINE:
Operating Condition
Injection Pump Assembly
Injection/Nozzle Assy.
Fuel Pump Assembly
Cylinder Head Assembly
Water Pump Assembly
Radiator Assembly
Air Cleaner Assembly
Carburetor Assembly
Governor Assembly
Turbo Charger
Oil Cooler Assembly
No. of Cylinders
ELECTRICAL
Generator/Alterator
Assembly
Starter Assembly
Voltage Regulator Assy.
Solenoid Assembly
Ignition Coil Assy.
Magneto

Unserviceable
Not Applicable

SUSPENSIONS:
S
S

FrontSpringAssembly
RearSpringAssembly

S
S

WHEELS:

S
S
S
S

Tires Front
Tires Rear
Spare Tire

S
S
S

NA
NA

PROPELLER SHAFT ASSY.:

NA
4

Front
Rear

NA
S

DIFFERENTIAL ASSY.:
Front
Rear

NA
S

NA

S
S

FINAL DRIVE

NA
NA
NA

Sprocket Assembly
Drive Chain

NA
NA

Distributor Assembly
2/cap , rotor
Wiper Assembly
Headlight Assembly
Stop & Tail Light Assy.
Directional Light Assy.
(front & rear)
Battery
CLUTCH ASSEMBLY
CUSHIONS:
Front Seat
Rear Seat
Operators Seat
GAUGES:
Hour/Service Meter
Speedometer
Tachometer
Temperature Gauges
(water)
Oil Pressure Gauges
Converter oil Temperature
Gauges

NA

UNDERCARRIAGES:

S
S

S
S
S
S

Track Link Assembly

Idler Assembly
Track Adjuster Assy.
Track Roller Assy.
Carrier Roller Assy.
TORQUE CONVERTER
BODY/CAB/FENDERS

NA
NA
NA
NA
NA
NA
S

WINDSHIELD (Front)
FUEL TANK ASSEMBLY
HYDRAULIC SYSTEM:
Hydraulic Pump Assembly
Hydraulic Motor Assembly
Hydraulic Hoses
Control Valve Assembly
Hydraulic Cylinders

S
NA

S
S
S
NA
S
NA
S

NA
NA
NA
NA
NA

TRANSMISSION ASSEMBLY S
NA

TRANSFERCASE ASSEMBLY S
BRAKE SYSTEM:
WINDSHIELD (rear)
Master Cylinder Assembly
FUEL TANK ASSEMBLY
S
STEERING SYSTEM:
Power Steering System
S
Steering Clutch Assembly with Disc Plate & Brake Lining
ACCESSORIES:
Dozer/Blade Assembly
Riper Assembly
NA
Cutting Edges
NA
End Bits
Dragline Bucket
NA
Clamshell Bucket
Backhoe Bucket
Ditching Bucket
NA
Fairlead assembly
Tagline Assembly
(for crane)
NA
(for crane)
Compressor
Cables
NA
Boom Assembly
NA
Boom Pulley
Lifting Block
NA
Others

S
NA
NA

NA
NA
NA
NA
NA
NA

REMARKS:
Engine needs top-overhauling
Signal lights and Headlight Assy. - not original/Taiwan
Needs underchassis repair - brake system & Suspension Assy.

Odometer Reading = 97,500 kms.

Inspected by:

JUAN DELA CRUZ

(NAME)

Sr. TAS

(DESIGNATION)

A. When Current Market Value (CMV) of a comparable data is

available

Solution:

CF1
AV = CMV x
CF2
CMV = Current Market Value
CF1 = Condition Factor of subject property
CF2 = Condition Factor of comparable property
Advertised Prices (similar brand and year model from Used Car
Dealers):
a) P209,000.00
b) P260,000.00
c) P285,000.00
use CMV = P209,000.00

CF1 (see attached check list of subject property, Annex

C1)
Component
Engine
Transmission
Differential
Body / Chassis
Others

%Weight1
23
7
5
35
30

CF
0.80
0.90
0.90
0.75
0.75

=
=
=
=
=
Total:

0.1840
0.0630
0.0450
0.2625
0.2250
0.7795

1/ From Table 1 of Manual on Appraisal

CF2 (see attached check list of subject property, Annex C2)

Component
Engine
Transmission
Differential
Body / Chassis
Others

%Weight
23
7
5
35
30

CF
0.60
0.85
0.85
0.70
0.40

=
=
=
=
=
Total:

0.1380
0.0595
0.0425
0.2450
0.1200
0.6050

Thus:
0.7795
AV = (P209,000.00)
0.6050
AV = P269,282.00

B. When Replacement Cost New (RCN) is

available
1. When the Estimated Useful Life (EUL) of the property is available
Given:
method

Same vehicle/property used in the above CMV

Solution:

AV = RCN x ERUL
EUL

RCN = Replacement Cost-New

ERUL = Effective Remaining Useful Life
EUL = Estimated Useful Life (Table 2)
To determine RCN of the vehicle under appraisal:
The cost of brand new engines for the vehicle
available in
the market is P100,000.00/unit. Therefore:

Component
Engine

% Weight
23

P 100,000.00

7 (P100,000.00)
Transmission

30,435.00

21,739.00

152,174.00

23
5 (P100,000.00)
Differential

=
23
35 (P100,000.00)

Body/ Chassis

35

=
23
30 (P100,000.00)

Others

30

130,435.00

23
Total:

P 434,783.00

say:

P 435,000.00

Add Cost of Assembly, OCM:

65,000.00

Note: If there are available price data in the market for the other
components, use the market data of said components rather than the
ratio and proportion applied above.
Component
%Weight ERUL
Engine
23
6
7
Transmission
7
6
7
Differential
5
6
7
Body / Chassis
35
5
7
Others
30
5
7

EUL
= 0.1971
= 0.0600
= 0.0430
= 0.2500
= 0.2140
0.7641

AV

= (P500,000.00) ( 0.7641)

AV

P382,050.00

B. When Replacement Cost New (RCN) is

available
2. When the Estimated Useful Life (EUL) of the property is not available
Given: Same vehicle/property used in the above CMV method
AV

RCN x

CF

where:
RCN

P500,000.00 (from B.1 above)

CF

0.7795 (from CMV Method above)

AV

P500,000.00 x 0.7795

AV

P389,750.00

C. When Acquisition Cost (AC) is available

For imported properties: Acquisition Cost Method
AV
where:
CFF

AC x CFF x CF

Currency Fluctuation Factor

P/$ exchange rate on year of appraisal

=
P/$ exchange rate on year of acquisition
40
=
25.7144
CFF

1.56

CF

0.7795

AV

(P495,000.00) (1.56) (0.7795)

AV

P601,930.00

D. Other Cases

D. Other Cases
1. When the property/subject vehicle is lost for which accountability is
being assessed:
CF1
AV = CMV x
CF2
1
AV

P209,000.00

x
0.6050

where : CF1 = 1 (condition factor when subject property is lost

under sec. 4.1.3)
AV = P345,455.00

D. Other Cases
2.

When the component, such as engine unit, of the above vehicle

under appraisal is missing/salvaged:
0.7795 0.1840

AV = (P209,000.00)
0.6050
0.5955
= (P209,000.00)
0.6050
AV = P205,719.00
where:
0.1840 = over-all CF of the engine unit of the subject vehicle

D. Other Cases
3.

When engine unit is beyond economic repair and is considered

junk/scrap:
CF1 0.1840
AV = CMV x
CF2

+ junk value of the

engine unit

where:
junk value
=
engine unit
=
junk value
=
engine unit

Estimated weight
scrap/junk value
of Engine
of metal as canvassed
500 kilos (P5.00)
P2,500.00

where:
P5.00

prevailing market value of metal

0.5955
AV = (P209,000.00)

+
0.6050

=
AV =

P205,719.00 + P2,500.00
P208,219.00

P2,500.00

The End