A draft of a revised international glossary of business valuation terms has been developed, and feedback is wanted on the terms included and their definitions. The draft is a result of the collaboration of the ASA, AICPA, RICS, TAQEEM, and CBV Institute. Public comments are due January 31, and the document, titled International Valuation Glossary—Business Valuation, can be found if you click here. Comments can be submitted if you click here, but the AICPA has asked its members to provide feedback directly to Mark Smith, senior manager of the AICPA’s FVS section, via email at mark.smith@aicpa-cima.com.

Key point: The revised glossary will be made part of official standards, and it contains technical terms and methodologies, a number of which have emerged since the prior version (published in 2001). Some practitioners we spoke with are worried that this could create a problem, especially in a litigation context. For instance, you might get this question related to a new glossary entry: “Did you use or consider the Greenfield method in your valuation analysis?” If you answer “no,” the next question you’ll get is “Why not? It’s in your professional standards.”

It may be better to promulgate the revised glossary in nonauthoritative form, such as an advisory or practice aid.