In addition to the news that the CEIV credential was being discontinued (see previous item in this issue), here are some other takeaways from the ASA Fair Value Spring Conference in New York City on May 4:

• The current economic picture is seen as transitory, and there have been no major changes to long-term growth rates being used (a range of 2% to 2.5% was mentioned);
• The Big Four are eyeing AI (“you can’t fight machines”), and they are learning how to harness it—they don’t see its use in business valuation rising to the level that it has with real estate appraisals;
• Aswath Damodaran (New York University Stern School of Business) continued his strong criticism of the environmental, social, and governance (ESG) movement;
• For fund valuations, experts are focusing more on the annual operating plan, taking a more forward-looking approach;
• Fair value concepts do not pay enough attention to the legal boundaries of protection with respect to technology and intellectual property assets, which have a “huge” impact on value; and
• A final version of the AICPA’s business combinations guide is expected to be issued in Spring 2024.

A more detailed recap of the conference will be in the June issue of Business Valuation Update.