The American Institute of CPAs has released a second exposure draft of a proposed statement on standards for valuation services.
The draft, “Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset,” is open for comment until Dec. 15. The statement provides guidance to CPAs who are members of the AICPA for an engagement or any part of an engagement that determines the value of a business, an interest in a business, security or an intangible asset.
The first exposure draft on the subject was published in 2005. Among the specific issues the AICPA is requesting comment on in the draft’s latest incarnation are:
- The treatment of oral valuation reports;
- The interpretation of the “scope of applicable services;”
- The scope of work a valuation analyst should perform when relying on the work of specialists (such as real estate appraisers); and,
- The distinction between valuation and calculation engagements.
The standard would apply to AICPA members who perform valuation services in a variety of circumstances, including tax, mergers and acquisitions, litigation, financial planning and fair value. The institute estimates that more than 25,000 CPAs currently provide such services.A copy of the proposed standard can be downloaded at
