BP s Upstream segment reported underlying pre-tax replacement cost
profit of $2.
When coinsurance provisions apply, in order for a building owner to collect full coverage on a damaged building, the property must be insured for an estimated replacement cost
, within a certain percentage range of the actual cost to replace.
With the integration of the e2Value product set to RC Inspection, users will now be able to enter key property details in the field which will be sent to the e2Value service to calculate the replacement cost
once the user is back online.
29, 2005 report showed a discrepancy between the actual cash value of the building with the improvements and the replacement cost
of the building with the improvements finding an actual cash value of $820,475 and replacement cost
Also, knowing full well homeowners of three-deckers would not collect the full replacement cost
of the home is beyond belief.
Accordingly, the Service has concluded for reasons of administrative convenience and burden reduction that the use of replacement cost
as an accounting method for determining the cost of heavy equipment parts in inventory is permissible.
In addition, on a prospective basis, because taxpayers would no longer be able to match current replacement costs
with current revenues, they would be taxed on the appreciation in the value of their inventory investments.
Insured disaster victims may have an economic loss if their insurance companies won't settle with them for the replacement cost
of their real and personal property.
As you might expect, a replacement cost
policy can be pricey, especially if you add extra coverage.
Which valuation method you choose -- replacement cost
or actual cash value -- depends upon what you want from your insurance following a loss.
Would replacement cost
be more or less (for example, when replacing computer equipment)?
Since there is a general agreement as to the replacement cost
formula, whether a particular reproduction functional obsolescence formula is correct, is easily determined mathematically.
A product's life-cycle cost, including total operating run times, equipment repair records and accumulated repair costs, versus replacement cost
over the product's estimated payback period - all this information can and should be collected for your analysis through your maintenance management programs.
The Jaskos conceded this point but claimed the insurance policy should be considered separate from the ownership of the home, and therefore the legal fees incurred to regain the house's full replacement cost
should be deductible.
Focus instead on replacement cost
or some measure of "value in use," like appraised values.