The situation:
An energy company with over 900 megawatts of renewable power generation across 80 projects worldwide required a valuation for financial reporting, tax, and stamp duty. The client faced a range of value affecting challenges, including unprofitable sites, overcapitalisation, change order variations, recent expansions, relocations, decommissions, and a subset of records that contained assets which did not physically exist (ghost assets).
PwC support:
Our client sought support with obtaining a valuation that would withstand regulatory scrutiny and satisfy the company’s auditors. Our advice and deliverables included:
- Credible valuation on a large and complex dataset with numerous domestic and international locations with consideration of the location energy industry for each region.
- A reasonable but significant tax depreciation benefit on the asset revaluation.
- Rebuild of the fixed asset register for a particular geographic location with poor records.
- Support and defence of our position to the Office of State Revenue.
The result:
The client has booked a significant tax depreciation benefit and has confidence that the advice provided was reasonable, unbiased, and defensible. The client also now trusts their asset listing and can make informed decisions throughout the asset lifecycle; planning, acquisition, maintenance, utilisation, redeployment, and disposal.
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Nigel Smythe