Financial Reporting:
They provide accurate values for plant and machinery to be reflected in financial statements, ensuring compliance with accounting standards. This also helps in calculating depreciation accurately, affecting profit and loss statements.

Insurance Purposes:
Valuations are necessary to ensure that plant and machinery are insured for their correct values, providing sufficient coverage in case of damage, loss, or theft. They also help in determining appropriate insurance premiums based on the accurate value of the assets.

Buying and Selling:
Valuations provide a fair market value for plant and machinery during buying, selling, or mergers and acquisitions, facilitating transparent and fair transactions. They assist buyers and sellers in making informed investment decisions based on accurate asset valuations.

Financing and Collateral:
Valuations are required by lenders to assess the value of plant and machinery offered as collateral for securing loans. This is crucial for evaluating the creditworthiness of businesses based on the value of their tangible assets.

Taxation and Compliance:
Valuations ensure accurate reporting of asset values for taxation purposes, including capital allowances and property taxes. They also help meet regulatory requirements for periodic asset valuation and reporting.

Internal Management:
Valuations aid in effective asset management, maintenance planning, and lifecycle management of plant and machinery. They also help with budgeting and cost control by providing a clear understanding of asset values and replacement costs.

Dispute Resolution:
Valuations provide authoritative figures for use in legal disputes, settlements, or divorce proceedings involving asset division.