AICPA Introduces Its New Valuation Standard




Business valuation is an integral part of a number of CPA practice areas and many groups within the AICPA will be affected by the standard, AICPA Statement on Standards for Valuation Services no. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset.

The Business Valuation Standards Writing Task Force recognized the interdisciplinary impact of this subject when it began its work in 2003 and decided to proactively seek out the thought, opinion and input of the respective stakeholders and leaders who would be affected by a business valuation standard. In all, 11 constituency groups within the AICPA offered important input into this standard.

In addition, feedback was received from firms and stakeholders of all sizes, including the very largest accounting firms, 20 state societies, many of the top 25 accounting firms, and appraisal organizations including The Canadian Institute of Chartered Business Valuators, the National Association of Certified Valuation Analysts, The Association of Insolvency and Restructuring Advisors, The Financial Consulting Group, Duff & Phelps and the Appraisal Institute .

The standard applies to engagements to estimate value accepted on or after Jan. 1, 2008. Earlier application is encouraged. The standard provides principles-based guidance for CPAs working in this practice area. The AICPA offers educational opportunities in business valuation that cover the new standard. Look for information on the AICPA Business Valuation and Forensic & Litigation Services Center at


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