AICPA Issues Exposure Draft on Business Valuation Standards

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.

You may like these other stories...

IRS must take oath on Lerner emails: judgeMackenzie Weinger of Politico reported on Thursday that a federal judge ordered the IRS to explain under oath how it lost emails connected to Lois Lerner, the ex-IRS official at the...
Credit Suisse says pension assets at risk unless court delays sentencingJohn Letzing of the Wall Street Journal reported on Wednesday that Credit Suisse Group AG says its management of billions of dollars in assets for...
The prospect of International Financial Reporting Standards (IFRS) being fully adopted in the United States in the near future are growing less likely, as the Financial Accounting Standards Board (FASB) and the International...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.