AICPA Introduces Its New Valuation Standard

BY EDWARD J. DUPKE

  

 
 

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 .

EFFECTIVE DATE AND FURTHER EDUCATION
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 http://bvfls.aicpa.org/.

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

News quiz: Senate health care bill in the spotlight

Reports related to the Republican bill to repeal many provisions of the PPACA, other tax issues, and the giant AICPA ENGAGE Conference offered a diverse reading list for June. See how much you know about recent news with this short quiz.