The AICPA has issued a bridging document to move a VS100 (Statement on Standards for Valuation Services) valuation engagement to an International Valuation Standards (IVS)-compliant valuation engagement. This is the culmination of a project that has been in development for over a year.
Why have a bridging document? Why isn’t there a similar bridging document to USPAP, ASA, NACVA and other valuation standards? I have my opinions on the subject, and note they are just that—my personal opinions. Nothing official here!
It is my belief that the AICPA is under pressure to be part of the global valuation community. ASA has moved in that direction and holds classes in other countries, for example. Additionally, the AICPA has fully embraced the International Financial Reporting Standards (IFRS) community worldwide but not, of course, in the US, where GAAP is the governing set of accounting standards, set by the Financial Accounting Standards Board (FASB). The AICPA itself has been moving toward becoming a worldwide organization. In fact, its legal name now is the Association of International Certified Professional Accountants. While bridging documents for USPAP, ASA, and NACVA might be helpful, they are, in fact, already in existence. NACVA has published such a document and has updated it from time to time. That explains, in my opinion, one of the reasons for publication of the bridging document by the AICPA.
Another reason, in my opinion, is that the AICPA cannot adopt the IVS in full as a standard or even as an authoritative document. Differences between the IVS and VS100 would prevent the AICPA adoption of the IVS.
The bridging document is out there now, and it can be helpful for those AICPA members who also need or desire to comply with the IVS. The document is available to the public and not just members and can be accessed here. If you are not a member, you will have to register in order to access the document.