- Feature
- BUSINESS VALUATION
AICPA Introduces Its New Valuation Standard
BY EDWARD J. DUPKE
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| 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/. | |