AICPA members kept in dark about pending ABV change
The July 4th holiday is over, but the fireworks continue in the controversy surrounding the ABV credential.
Registration open for AICPA’s annual FVS conference
Start planning now to attend this year’s AICPA Forensic & Valuation Services Conference November 5-7 in Atlanta.
Last chance to take survey on growing controversy over the ABV credential
Leading members of the CPA/ABV community ask that you take a survey on the AICPA’s decision to open up the ABV credential to non-CPAs. The survey will be closed soon, so please make your voice heard on this important matter.
BVU News and Trends July 2018
A monthly roundup of key developments of interest to business valuation experts.
Make your voice heard in the AICPA ABV controversy
Leading CPA/ABVs are asking that you give your opinion on the recent decision by the American Institute of Certified Public Accountants (AICPA) to allow non-CPAs to be eligible for the Accredited in Business Valuation (ABV) credential (see prior coverage).
AICPA’s move to allow non-CPAs to get ABV sparks strong reaction
A number of prominent CPA/ABVs are urging the AICPA to reconsider a recent decision by its governing board to allow non-CPAs to be eligible for the Accredited in Business Valuation (ABV) credential. Please take a survey and give your thoughts.
CEIV quality monitoring FAQs
The AICPA and the Royal Institution of Chartered Surveyors (RICS) have released a series of FAQs that detail the much-awaited Quality Monitoring Program for the Certified in Entity and Intangible Valuations (CEIV) credential.
AICPA releases draft of PE/VC guide
After several years in the works, the AICPA has issued a draft “Accounting and Valuation Guide” that provides “nonauthoritative guidance” for valuing private equity and venture capital investments.
AICPA offers new certificates in forensics
Business valuation and forensics often go hand in hand, but some valuation experts are not qualified to get a certification, such as the AICPA’s Certified in Financial Forensics (CFF) credential.
Zyla Gives Update on Fair Value Developments
We attended the Southeast Chapter of Business Appraisers (SECBA) conference in Atlanta last month where Mark Zyla (Acuitas) talked about how the area of fair value is serving as a focal point for the profession to unify itself.
Award recipients at the AICPA FVS conference in Las Vegas
Top volunteers and young professionals were honored at the AICPA’s 2017 FVS Conference November 13-15 at Caesar’s Palace in Las Vegas.
SEC’s Daubert Challenge to Securities Valuation Testimony Fizzles
In an SEC case requiring valuation of restricted securities, court admits most of the testimony of parties’ experts; experts need not be specialists in given field and need not demonstrate familiarity with USPAP or SSVS to qualify under Daubert, court fin ...
AICPA unveils new CVFI credential for financial instruments
Comments are due Sept. 26, 2017, on an exposure draft of a “disclosure framework” that establishes parameters of documentation requirements for the Certified in Valuation of Financial Instruments (CVFI) credential.
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.
Registration open for AICPA’s annual FVS conference
It’s not too early to plan to attend the AICPA Forensic & Valuation Services Conference, which will be held November 13-15 at Caesar’s Palace in Las Vegas.
AICPA issues its first wave of CEIV credentials
The American Institute of CPAs (AICPA) has doled out its first batch of certifications for the new Certified in Entity and Intangible Valuation™ (CEIV™) credential for individuals doing fair value measurements.
SEC’s Daubert Challenge to Securities Valuation Testimony Fizzles
In an SEC case requiring valuation of restricted securities, court admits most of the testimony of parties’ experts; experts need not be specialists in given field and need not demonstrate familiarity with USPAP or SSVS to qualify under Daubert, court fin ...
AMERICAN SOCIETY OF APPRAISERS: Business Valuation Committee Special Topics Paper #3: The Use of Management's Prospective Financial Information by a Valuation Analyst
According to AICPA Professional Standards: AT Section 301 Financial Forecasts and Projections, “financial forecast is the prospective financial statements that present, to the best of the responsible party's knowledge and belief, an entity's expected financial position, results of operations, and cash flows. A financial forecast is based on the responsible party's assumptions reflecting the conditions it expects to exist and the course of action it expects to take.” In order for a valuation analyst to ...
AICPA Tips for Testifying Experts
Appraisers working on litigated disputes face special challenges. Several workshops at the recent AICPA conference in Nashville provided insights and survival tips that benefit both the seasoned financial expert witness and the upstart.
AICPA honors healthcare expert Mark O. Dietrich
Healthcare valuation expert Mark O. Dietrich, CPA/ABV, has been honored for his career contributions to the profession at the AICPA 2016 Healthcare Industry Conference in Nashville.
AICPA names new Forensic and Valuation Services committee chairs
Annette Stalker (Stalker Forensics) has been appointed as chair for the AICPA’s Forensic and Valuation Services Executive Committee; Michael Fahlman (Berkeley Research Group LLC) will chair the Forensic and Litigation Services Committee; and Nathan DiNatale (SC&H LLC) will assume the chair for the Business Valuations Committee.
Expert Prevails by Documenting Adherence to Valuation Standards
In fraud case, court rejects Daubert challenge, finding expert sufficiently identified assumptions and estimates she relied on and properly re-created subject company’s financial situation based on AICPA standards and authoritative valuation treatises.
Dreaded IRS estate valuation discount regs released
The Treasury has released long-awaited proposed IRC Section 2704 regulations designed to curb estate valuation discounts. It appears that the proposed regulations eliminate almost all minority discounts for closely held entity interests, including operating businesses owned by a family. The proposed regs have triggered a strong response from the valuation community, legal profession, and others.
Expert report proves best defense against Daubert offense
In litigation, attacks on expert opinions are par for the course, but a sound expert report can ward off a Daubert challenge and clear the way to admission at trial, as a recent fraud case illustrates.
FVQI exposure drafts comment period extended to August 24
You now have until August 24 to comment on two important exposure drafts that relate to the ongoing fair value quality initiative (FVQI) designed to improve financial reporting valuations for U.S. publicly traded companies.