The ASA’s BV committee has just submitted its comments on the Second Exposure Draft of the 2014-2015 version of USPAP to the Appraisal Standards Board (ASB), in particular, the proposed redefinition of “assignment results” to include aspects other than a “final opinion of value.” As the BVC’s letter explains:
Other aspects of the assignment may represent important factors in the final opinion of value, but they are not “assignment results” in their own right. While the proposed definition is a step in the right direction from the initial proposed change that included interim appraisal analyses, there are too many ways that other aspects of an assignment could be construed as something more than relevant in the context that they support a final opinion of value.
For example, the proposal might have “a possible unintended consequence” in litigation-related assignments, the BVC says. Contrary to the emerging trend in federal litigation that precludes appraisals from discovery, the broader definition of “assignment results” could elevate an interim analysis or calculation to the status of a final (and discoverable) opinion of value. Accordingly—should the ASB go ahead with the revision—“we request that you consider creating a litigation exception.” To read the BVC’s complete four-page letter, click here.
Still time to second the recommendation. The current exposure draft is an improvement over the initial proposal, notes Linda Trugman, chair of the BVC, “perhaps because of our many responses.” There’s still time to participate in the standards process by endorsing the BVC’s letter, Trugman says. Although the deadline for stand-alone comments was October 5, she believes the ASB will still consider endorsements of the BVC’s letter.