Business Valuation


SSARS ED Issued on Business Valuation Financial Statements

The accounting and review services committee issued in late December a proposed Statement on Standards for Accounting and Review Services (SSARS) titled Financial Statements Included in Written Business Valuations.

The proposed SSARS exempts “normalized financial statements”—which it defines—and historical financial statements from the requirements of SSARS 1, Compilation and Review of Financial Statements.

Generally, valuation professionals use financial statements only to develop and present their appraisal of a business’s value. For this reason, they need not, and often fail to, comply fully with GAAP or an other comprehensive basis of accounting (OCBOA). The committee therefore has issued this ED to exempt such statements from the provisions of SSARS no. 1, which requires compliance.

The ED defines “normalized financial statements” as financial statements that contain “necessary and appropriate adjustments in order to make an entity’s financial information more meaningful when presenting and comparing on a consistent basis the financial results of that entity to those of a comparable entity as part of a business valuation engagement.”

The exposure draft can be viewed at www.aicpa.org/members/div/auditstd/3bvexec.htm. The committee is accepting comments on it until June 9, 2000.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: Economy and health care changes top CPAs’ list

CPA decision-makers’ economic outlook and the House Republicans’ proposed tax changes as part of replacing the Patient Protection and Affordable Care Act received attention recently. See how much you know with this short quiz.