Items of property, plant and equipment that are not able to be reliably valued using market-based evidence for the same or a similar asset are referred to as being specialised. Specialised assets are those that are rarely if ever sold on the open market, except by way of a sale of the business of which they are a part, due to their uniqueness, which may arise from the specialised nature and design of the buildings, their configuration, size or location or other factors. Key characteristics of specialised assets are that they:
- are useful to a limited number of uses or users;
- rarely, if ever, sell on the open market, except as part of the business entity;
- are generally specialised structures; and
- earn revenue that has not been derived from an open market and for which market based evidence does not exist.
Specialised plant, machinery and equipment: These are specifically made to perform a particular function and cannot be adopted for any other use without carrying out comprehensive adaptation work which may be cost prohibitive. Also, this class of plant, machinery and equipment is usually well integrated with buildings thus making it very difficult to separate the building from it. Examples of specialised plant are: oil refineries, chemical works, power stations, Breweries, etc.
Non-Specialised plant, machinery and equipment: These are those for which there is a general demand and it can be used to perform other functions with or without adaptation. They are commonly bought, sold or leased in the open market. They also include those that are in general ancillary use for any type of business or industry. Examples: lift, water pumping machines, vehicles, computers, etc.
