Analysis finds that different BV standards do not conflict

BVWireIssue #148-4
January 28, 2015

Critics of the business valuation profession sometimes point to the five sets of BV standards that they say are confusing and that conflict with each other. However, a new analysis reveals that this is not the case.

In harmony: Mark Hanson (Schenck SC) and Mark Kucik (Kucik Valuation Group) have prepared a side-by-side comparison of the business valuation standards set by NACVA, IBA, AICPA, ASA, and USPAP. The authors’ intent is to show that all the standards are essentially addressing the same issues and do not conflict. Hanson and Kucik have graciously made the analysis available to everyone via BVR’s Free Resources page.

“We started this chart to address the concerns of the SEC and other regulatory agencies that the standards are confusing and that they conflict with each other,” says Hanson. Taking a look at the standards side by side was an eye-opener. “They’re not really that different,” says Kucik. “Yes, there are some subtle differences but the principles are very close.”

Where the chart shows differences, it can be interpreted as being covered in one of the other standards but worded a little differently. “These standards do not conflict and they all basically say the same thing,” says Hanson.

The authors hope that their analysis can be used as a starting point toward a unification of accepted standards by the various organizations.

Please let us know if you have any comments about this article or enhancements you would like to see.