USEFUL LIFE AND BOND ELIGIBILITY STUDIES

Opinions on useful life of fixed assets can be provided on a proforma basis before construction, after a new project is completed, or during the life of an existing asset. For the first two cases, the expected life and current cost of the major components are used to development the opinion on useful life. The latter case usually involves a condition survey of the components of the fixed assets, plus opinions on replacement costs, expected life, and remaining life (based on the condition survey).
Opinions on bond eligibility can be provided in association with opinions on useful life, stating the requirements for a particular bond issue are met.