As reported a couple of weeks ago (BVWire #52-3), one of the more controversial provisions of the AICPA’s proposed Statement on Standards for Valuation Services concerns the use of third party specialists, and the extra layer of scrutiny business appraisers would have to give reports by machine, equipment, real estate appraisers, etc.
In BVR’s telephone conference last week “BV Standards: AICPA, IRS, and Beyond—Where Are We Headed?”, panelist Ed Dupke indicated his AICPA task force had received numerous comments on this particular provision of the Exposure Draft—and changes were likely. Instead of due diligence, the final Standards may simply require BV analysts to disclose the degree of reliance (or lack thereof) placed on the third party work and opinions, according to moderator Ron Seigneur.
“But until Ed and his task force have an opportunity to fully evaluate all the 119 comment letters received,” Seigneur cautions, “nothing is official.” The vast majority of comments have been very constructive and helpful to the AICPA task force in its efforts toward finalization. “This particular part on third party reliance was arguably the most contentious provision within the exposure draft,” Seigneur says, “but I sense this resolution will be acceptable to most if not all,” as the AICPA continues to work hard at building consensus.
For a full transcript and/or CD of BVR’s telephone conference, which covered new IRS initiatives as well as continuing convergence of U.S. and international BV standards, click here.