Some valuation experts are of the opinion that calculation engagements are not a good thing for the profession. For example, Michael Paschall (Banister Financial Inc.) says in an article that the increasing use of calculation engagements “seriously compromises” historical valuation standards of reliability and independence. He feels that the dangers of calculation engagements are that they are being offered in contexts for which they were never intended, are prone to bias, and confuse users who don’t know the difference between a calculation and a full valuation.

Opposing view: During a recent webinar, Jim Alerding (Alerding Consulting LLC) made the case for calculation engagements and discussed recent AICPA guidance on this matter, which he co-wrote. Also, Alerding, along with Jim Hitchner (Valuation Products and Services) and Ed Dupke (Dupke Consulting LLC), wrote a rebuttal article giving what they say is the “real” story of calculation engagements.

We invite you to read these two articles, which we have made available as a free download if you click here. They are also available with your subscription to BVResearch Pro. We’d love to hear what you think!