The answer was a clear if not clamorous “no” to last week’s online survey asking, “Should the FASB regulate the valuation profession with respect to financial accounting?” (In fact, in the comment section, one respondent asked, “Is there a ‘Hell No’ button?”) Nearly 85% of respondents want the FASB to steer clear from setting valuation standards.
“The notion that the appraisal profession cannot regulate itself and develop standards for valuation in the context of fair value accounting is…just flat wrong,” commented Eric Nath, ASA:
There should be no problem whatever getting this done through the Appraisal Foundation much more effectively and much more quickly than the FASB could ever hope to accomplish. Regulations and/or standards on valuation from the FASB will also likely have some very negative unintended consequences both for the FASB [and for] the appraisal profession.
“The FASB is out of touch with the real world,” said another respondent. “They are creating rules that are nearly impossible to follow and are definitely cost prohibitive.” Yet one more said, “It’s what they do.”
Given the outpouring of opinion, we’ve decided to extend the survey another week; to register your viewpoint, click here. We’ll compile all responses and comments in an upcoming issue of the Business Valuation Update™.
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