ISCV seeks volunteers for investment properties project
Following its recent decision to develop a new standard and technical guidance on Investment Property, the Standards Board of the International Valuation Standards Council (IVSC) has now prepared a project brief to examine certain aspects of the issue, such as the use of different valuation methods, valuation inputs, derivation of discount rates, treatment of purchaser’s costs, determining [...]
BV standards already in close conformity, say industry leaders
We’ve heard from various sources that top BV experts and representatives are considering how to formulate a response to the SEC’s recent call for “unification” of the BV profession and its standards. In the meantime, we are reminded of the article by Nancy Fannon (Fannon Valuation Group), Mark Hanson (Schenck Valuation and Litigation Support), and Edward Dupke (Clifton Gunderson), in the May 2011 BVUpdate, [...]
The draft of FinREC’s IP R&D practice aid is available.
The draft proposal from the FinREC Task Force on in process research and development was just posted on the AICPA website. Here’s BVR coverage of pre-release comments on the report from members of the Task Force, as reported at the ASA National BV Conference last month: Revised IP R&D Practice Aid to Go Beyond [...]
AICPA posts exposure draft of goodwill impairment guide
The AICPA’s Financial Reporting Executive Committee (FinREC) has just issued a working draft of the AICPA Accounting and Valuation Guide Testing Goodwill for Impairment. Developed by the AICPA Impairment Task Force, the draft release provides non-authoritative guidance and illustrations for valuation specialists, preparers of financial statements, and independent auditors regarding goodwill impairment testing. Although it also [...]
Is your valuation work biased?
Here’s a way to see if your valuation is not objective, recommended by Jim Hitchner at the wrap-up session at the AICPA BV Conference: “List all of the assumptions you’ve made to come to your conclusion of value. You know what they are. Then, evaluate whether each assumption leads to a higher value [...]
AICPA report: If you’re not doing financial reporting, do you need to know about IFRS?
Interesting question at the AICPA National BV Conference this morning. ”Well, frankly, I guess if you’re only doing divorce work in Seattle, you could skip following convergence,” admitted Neil Beaton. ”But I ask the question if a head in the sand approach to these professional standards issues is the right approach for any appraiser.” Beaton [...]
Will I-bankers ever understand what BV appraisers do?
Last week’s report from an investment banker on providing the “market value” of an ambulatory surgery center (ASC) prompted Gary Trugman (Trugman Valuation Associates) to point out that the I-banker’s comments were “not only self-serving, but it shows his ignorance about business valuation. A business appraiser interprets the market and does not make the market,” Trugman says. “A proper [...]
FASB exposes its new standards-setting process for private companies
Just last week, the board of trustees of the Financial Accounting Foundation (FAF) issued a request for public comment on a new plan intended to improve the standard-setting process for private companies, according to a recent release: The plan proposes the establishment of a new Private Company Standards Improvement Council (PCSIC). Working jointly with the [...]
2011 edition of International Valuation Standards now available
The International Valuation Standards Council (IVSC) recently published a completely revised edition of the International Valuation Standards. The result of a three-year improvement project, the goal of the new standards is to promote consistency and transparency throughout the valuation process. According to the IVSC, “the standards cover the valuation of a wide range of assets [...]
When is it appropriate to use a calculation of value in court?
When the court specifically asks for one! At least, that’s the implicit reading of a new California divorce case, in which both party experts valued the husband’s 80% interest in a radiology software company at the beginning of the marriage (1995), for determination of its appreciation until the company’s sale three years later (for $7.5 [...]
Share your thoughts...