AICPA issues FAQs on valuation considerations related to the CARES Act

BVWireIssue #213-2
June 10, 2020

valuation methods & approaches
AICPA, risk analysis, coronavirus, COVID-19

The latest in a series of very useful material from the AICPA is a document that includes FAQs that address questions about the impact of the CARES Act on business valuation. The document also includes a summary of four key CARES Act provisions: the Paycheck Protection Program (PPP), Emergency Economic Injury Grants (EEIGs), Economic Injury Disaster Loan (EIDL), and the Small Business Debt Relief Program. There are additional FAQs for these provisions. You can access the document if you click here.

“The COVID-19 pandemic has had an unprecedented impact on businesses, large and small, and has substantially impacted the value of many of those businesses,” says Eva Simpson, the AICPA’s director for valuation services. “The CARES Act is intended to help businesses weather this pandemic, but it also adds new considerations to business valuations. We developed these FAQs to provide broader clarity to guide valuation professionals through that process.”

The AICPA CARES Act Valuation Impact Task Force developed the FAQs. The lead authors are Nathan DiNatale, Ethan Hitchcock, Shaun Maloney, Thomas Reck, Maureen Rutecki, Josh Shilts, and Paul Wapner.

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