Some doubted the day would come, but after years of hard work, exposure drafts, debate, and more work to reconcile varying interests among its constituencies, the American Institute of Certified Public Accountants, through its Consulting Services Executive Committee, has just released its Statement on Standards for Valuation Services No. 1 (SSVS No. 1) “Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset.” According to the official statement last week, the new valuation standards will apply to all:
AICPA members who perform an engagement that estimates the value of a business, business interest, security or intangible asset for numerous purposes, including sales transactions, financing, taxation, financial reporting, mergers and acquisitions, management and financial planning and litigation.
SSVS No. 1 is effective for engagements accepted on or after January 1, 2008. “The AICPA has an ongoing responsibility to issue guidance to CPAs in major areas of practice, including valuation services,” says Mike Crain, Chair of the BV Committee. “We will offer education to our members on SSVS No. 1 so that they will be able to integrate it into their client work.” Currently, the AICPA has posted a “Valuation Standard Implementation and Toolkit,” including a copy of the Statement, presentations, and an FAQ. (In particular, Questions 11 and 12 note when the new standards apply—and when they do not.) To find out more, click here.
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