Was it a mistake for BV to ‘shun’ USPAP?

BVWireIssue #59-1
August 1, 2007

The BVWire forum on business valuation sites and societies continues with this commentary by Roger Durkin, JD, MSA, ASA (Durkin Valuation Consultants, Boston): “Of course I agree” (with comments urging BV societies to stop their “tribal warfare” and collaborate on one set of harmonious standards.)   “The tribal war is truly a clash of egos, and touches on the nerve of the valuation profession;” in particular, the impression that appraisers seek and receive credentials as a “form or anointing.”  

Further, “business appraisers only had IRS [Rev. Ruling] 59-60 until USPAP” came along.  “But BV practitioners shunned USPAP,” Durkin maintains, in favor of developing their own society-specific standards.  Then late last summer, the IRS issued Notice 2006-96, endorsing USPAP, while at the same time, FASB and the IVSC became more interested and influential in the standards-setting arena.  “Had BV adopted USPAP in the beginning (1989), we would have outstanding standards, and professional practice in accord with national standards.  But keep making more and more detailed society-specific ‘standards,’” Durkin says, “and you will cause the courts to look for a source of standards stability someplace else.”

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