The American Institute of Certified Public Accountants (AICPA) last week issued an exposure draft of proposed Business Valuation Standards for comment. The standards would provide guidelines for the development of valuation conclusions and reporting on the results, according to a release from the AICPA.
Comments are welcome until June 15 on the standards, which would apply to AICPA members who provide valuation services in areas including tax, mergers and acquisitions, litigation and financial reporting.
Since the proposed standards encourage consistency and disclosure in CPA valuation development and reporting, users are expected to be the beneficiaries.
With the AICPA estimating that 25,000 CPAs now provide business valuation and forensic & litigation services, CPAs who are members of the AICPA would be expected to comply with final standards when performing a valuation engagement that reaches a conclusion of value or an indication of value.
“Once finalized, the AICPA BV Standards will provide our members with a set of guidelines for valuation of a business, business ownership interest, security or intangible asset and do so in the unique context of a CPA's practice” said Edward J. Dupke, CPA/ABV, Chairman of the Business Valuation Standards Task Force of the AICPA Business Valuation Committee.
“Given the fact that an increasing number of CPAs are offering valuation services and that market demand for business valuations has experienced steady growth since the 1980s, the AICPA developed the proposed BV standards to improve the consistency and quality of practice among its members who perform BV engagements,” said Michael Crain, CPA/ABV, Chair of the AICPA BV Committee.
For further information about the AICPA's draft Business Valuation standards. For information about the AICPA Business Valuation and Forensic & Litigation Services Membership Section and its Accredited in Business Valuation (ABV) credential, and select the ”Membership” tab.
Comment should be submitted to Bvstds@aicpa.org.