THE VALUATION OF an asset may be used for a number of purposes. It could be used togenerate information needed for internal control and reporting, for resource allocation and for company performance assessment. It could also be used for getting the basis for realization of assets, to determine insurance cover and for risk exposure, but also for external reporting. There could be a choice of valuation method and this depends mainly on the purpose of the valuation. However, it could also depend on the nature of the assets involved.