As a reminder, comments to the Appraisal Standards Board’s third exposure draft to the 2014-2015 USPAP are due this Friday, Jan. 25, 2013. The ASA BV Committee is currently preparing its response, says chair Linda Trugman, in her most recent weekly missive to members, “but it never hurts for there to be more than one voice from the BV community.” Trugman also reports the ASB has withdrawn its change to the definition of “report,” stating:
As a result of the concerns expressed with both the current and the proposed definitions of report, and the fact that these concerns are largely a function of the appraiser’s type of practice, the ASB has decided to investigate the possibility of having different report and workfile requirements based on the intended use and intended users of the assignment. The Board recognizes that this would be a radical change to USPAP and would affect many stakeholders. For that reason, such a change must be thoroughly investigated and vetted. Rather than rush to adopt changes for the 2014-15 edition, the ASB plans to follow up on this issue after the 2014-15 USPAP has been adopted. This will allow the Board to proceed judiciously and allow for the necessary level of consideration and deliberation on this important topic.
“Maybe they’ll consider a litigation exception when they do this?” Trugman asks, somewhat rhetorically. “We can hope!”
ASA FV conference is next week in New York. In the meantime, the ASA is hosting its annual one-day conference on fair value topics. Sessions include determining DLOM with put-option models, by John Finnerty, and a Big Four panel discussion on the state of the audit. For more information, click here.
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