An excellent program was presented to an eager crowd at the American Society of Appraisers (ASA) Fair Value Conference in New York City April 30. Here are some interesting takeaways:
- There’s a substantial disconnect in thinking about the size effect between practitioners and academics, so experts should take a fresh look at this and not just plug in a size premium by rote;
- One hundred and three countries have now adopted IVS global valuation standards from the IVSC, which is also working on much-needed valuation standards for financial instruments;
- The ASA is upping its collaboration with international groups, such as RICS, Korea appraisers, and the iiBV;
- When valuing debt, consider the quality of collateral when estimating yield, especially for early-stage money-losing firms;
- Funds are using third-party valuers more, and some stakeholders are pushing for it to be a requirement;
- The Big Four have trained their staffs but stopped short of credentialing them with the CEIV until the quality control and review process are ironed out;
- Jaws dropped in the audience when told that “ISQM1” will be a huge regulatory sea change that will impact everyone right down the line, including valuation experts—but virtually no one in the audience had heard of it; and
- Recent proposed inventory valuation guidance from the AICPA is not “new” but rather an “enhanced view” of all existing guidance pulled into one place.
Johnnie White, the ASA’s new CEO, was on hand to greet the enthusiastic audience, which included practitioners from all across the U.S. and at least five countries. Congratulations to conference chair Bill Johnston (Empire Valuation) for an excellent event. We’ll have more coverage in future BVWires and in Business Valuation Update.
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