Calculations vs. conclusions: when and where

BVWireIssue #105-3
June 15, 2011

The leaders of the new NACVA/IBA standards unification effort commented on this topic, always an issue under any standard: “We do less than 10% of our work in calculations.  For IRS [engagements], you can meet the adequate disclosure requirements so that the gift tax work can be filed and the clock can start to run, and that’s how our engagements are designed,” said Mark Hanson (Schenck SC). Nancy Fannon (Fannon Valuation Group) said she almost never does calculation reports, because her firm focuses on litigation. “You have to understand that divorce is also litigation work, even if the marital assets are small,” she added. Mark Kucik (Kucik Valuation Group) does some calculation reports, particularly when an attorney calls asking for settlement advice. “I have a conversation with them in their conference room, and they can tell me then whether they’re going to step up to a valuation report.”

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