CostQuest AIMS

Our Work

Mar 31, 2017

Contributors: Mary Hilvert, Bob Garringer, Luis Rodriguez

CostQuest Asset Inventory Management System (AIMS) is a web-based application hosted on a CostQuest server.   AIMS is a reporting tool which permits CostQuest clients (company or appraiser) to develop reports which identify the book investment, replacement cost, percent good factor, and replacement cost less depreciation.  The reports can be created at a site specific (cell site) or geographic in nature (county, state or national).   The AIMS system has been utilized by a telecommunications client and various Appraisal firms to develop appraisal analyses and prepare reports for use in the appraisal.  The system is also currently being trialed for use by additional clients active in the wireless communications and cable industries.

For industries, such as telecommunications, which are impacted by quickly changing technology, a key component in developing a cost approach for appraisals is the Replacement Cost New (RCN).  By developing an RCN approach to value, excess capital costs and excess capacity located in the subject network are removed. CostQuest Associates has significant experience in developing RCN analyses for several major wireline, wireless, and cable carriers since 2007 using our CostQuest RCN Model (CQRM) platform. The RCN provides a forward-looking cost of the network and summarizes those costs by geography, asset, network component and account.

Once CostQuest prepares the RCN, it can be uploaded into AIMS.  AIMS, as the name implies, retains data related to a client’s fixed assets. In the case of current AIMS users, these are telecommunication network assets.  There are two primarily features of AIMS:

  1. RCNLD Creation for Appraisal:  The system uses the carrier’s fixed asset register (the cost on the books by vintage year for their assets) and the CostQuest prepared RCN, and apportions the RCN value for the asset or account across the fixed asset vintage years.   In addition to the fixed asset register and RCN, trend and depreciation tables are key to creating the RCNLD.   AIMS allows the user to enter trending and deprecation tables to develop values for items not included in the network RCN and apply appropriate depreciation rates to all assets.   In preparing reports, the user may also specify processing options based on the reporting category, such as what type of assets/accounts are to be included, real, personal, tangible, or intangible. It also permits the user to identify by asset category any additional functional or economic obsolescence to be applied in generating the RCNLD report.   The AIMS ultimately produces an RCNLD report by site or geographic area including only desired account classifications, depreciation, and obsolescence.
  2. Asset View for Appraisers or Negotiators:  For assets that are location based, such as cell towers, the system provides a map that allows the user to zoom into a county and see the towers within that county.   The user may choose the county and view the towers in that county.  Once a site is selected, various details associated with the selected site can be displayed.  The reports currently available include RCN and RCNLD value reports, fixed asset data and site and engineering data such as address, Lat/Long, tower construction, technologies present, and other useful data elements.

Report Example:

rcn-rpt.png

AIMS is a reporting system designed to provide value and site information reports helpful to an appraiser and/or client tax representative quickly based on user’s need.