Section 5.2 - Tangible Non-Realty Assets (Personal Property): Furniture, Fixtures and Equipment (FF&E) contains an overview of current models being used in the assessment community to identify the items to be included in FF&E and basic methodologies to value the FF&E in place.
- This section focuses on the following in a more detailed manner:
- The “return on” and “return of” FF&E.
- Deduction of a reserve for replacement expense in the financial pro-forma.
- The “return on” and “return of” FF&E and a reserve for reserve for replacement.
- The current Alberta Assessors Association (AAA) model used to isolate the value of the FF&E.
- The Hotel MacDonald two part deduction.
- The model proposed by the Authors.
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