Biodiesel producer: asset valuation

One of the main national manufacturers of sunflower oil has requested the assessment services of ACCODE due to signs of deterioration in a biodiesel production plant built to take advantage of plant waste from the main process. Biodiesel plants have lost their attractiveness due to currents of opinion that have arisen against the production of fuel from food products. This fact has forced the elimination of tax incentives for this type of fuel, which has led to the shutdown of all production plants installed in Spain, causing a corresponding loss of value in the assets of their owners, which must be reflected in its financial statements by recording an impairment ( Impairment )