New analysis reveals different BV standards do not conflict

A casual observer may look at the various business valuation standards different organizations issue and get the idea that they are at odds with each other. But that is not the case.

New analysis: All of the standards are essentially addressing the same issues and do not conflict with each other, according to a new side-by-side analysis of the five sets of North American and three sets of international standards. A chart that compares the North American standards was presented at the annual conference of the National Association of Certified Valuators and Analysts (NACVA) in Chicago June 7. The authors of the chart are Mark Hanson (Schenck SC), Mark Kucik (The Kucik Valuation Group LLC), and Carl Steffen (WSRP LLC). Hanson is the incoming chair of NACVA’s standards board, and Steffen is the outgoing chair.

Of course, the standards have some subtle differences, but the principles are very close. Where the chart shows differences, it can be interpreted as being covered in one of the other standards but worded a little differently. Because of these nuances, practitioners still need to read and interpret what the different standards say about a particular aspect of practice in order to be in compliance.

The Business Valuation/Appraisal Standards Comparison Chart compares the standards NACVA, IBA, AICPA, ASA, and USPAP promulgated. The authors are finalizing a similar chart of the international standards (IVS, Canada, and RICS).