In his latest issue of Hardball With Hitchner, Jim Hitchner (Financial Valuation Advisors) commends the “fine work” done on the 2021 International Valuation Glossary—Business Valuation. He also points out that six glossaries are now available and/or required to be followed, depending on which valuation professional organizations (VPO) you belong to. Here are his recommendations for three distinct groups with the following designations:

• CPA and/or ABV: The AICPA has not adopted the 2021 glossary, and the 2001 version is still part of SSVS VS Section 100, so these practitioners must follow the 2001 glossary. Hitchner (who is a CPA/ABV) says he will follow the required 2001 version (which is still relevant, he says) but will also follow the 2021 glossary as well, but on a “selective basis,” he writes.
• ASA only: The ASA has adopted the 2021 glossary, so it must be followed (ignore the 2001 version), he believes.
• CPA/ABV, ASA: For those individuals holding both AICPA and ASA credentials, follow both the 2001 and 2021 glossaries, Hitchner advises. He also suggests that you include (in the body of your report or in a footnote) a discussion of which definition, between the two glossaries, you followed and why (or a statement that either definition would apply correctly to your work).

We also suggest that analysts check with their own professional organizations for guidance.

In the issue, Hitchner also provides 40 pages of analysis with commentary about the differences between the 2001 and 2021 glossaries. Future issues will address the use of all six sets of glossaries.