“Ray is right,” says Steve Reiss, CPA, CVA, responding to last week’s online survey regarding the need for the BV community to develop a single set of standards.  “If we let the FASB dictate, they will drive valuators crazy in trying to satisfy the auditors with fair value concepts.  If we can’t regulate ourselves, the SEC and IRS will step in more than they already have.”

The vast majority (79.8%) of respondents agrees.  “Our clients and the marketplace deserve a common set of principles,” says John Grant, CPA.  The current diversity of standards among the ASA, IBA, AICPA, etc. leads to diverse methodology, language, and content in valuation reports, he believes.  “As a result, three quality reports on the same subject interest may not be comparable, though accurate and fulfilling the organizational ‘standards’ [of the appraiser].” 

Some comments do betray the “balkanization” of BV.  “If we miss this opportunity,” says one anonymous commentator, “the standards will be ceded to the AICPA, which is already flexing its muscle into this arena, albeit inappropriately and without substantial understanding of the BV practice.”  A newcomer to BV decries the “multitude of different appraiser organizations and their proprietary standards” and adds, “I would have liked to see more unity. The political, partisan infighting [over] key BV standards is disappointing.”
To add your comments to the ongoing survey, click here.  A complete compilation will appear in the next issue of the Business Valuation Update™.