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 [...]
Can the IRS subpoena your draft report, despite FRCP 26?
Recent amendments to Rule 26(2) of the Federal Rules of Civil Procedure (FRCP) now preclude the discovery of expert draft reports, with some exceptions. (See BVWire #96-1and BVWire #99-3.) At the same time, the recent case United States v. Richey (seeBVWire #102-3) confirms that the IRS has the broad power to subpoena an appraiser’s work files (presumably including [...]
Live NACVA Report: Calculations vs conclusions: when and where
There are more questions about standards in this area than anywhere else. Here are answers directly from the leaders of the new NACVA/IBA standards unification effort: “We do less than 10% of our work in calculations. For IRS you can meet the adequate disclosure requirements so that the gift tax work can be filed and [...]
What is the most common professional certification in the business valuation field?
The leading certifications in the profession, as reported in the new 2011/2012 BV Firm Economics & Best Practices Guide, appear in the table below. What are the most common certifications in the business valuation profession? Certification Certifying organization % of total certifications 2010 % of total certifications 2008 CPA AICPA 29.4% 28.3% ABV AICPA 17.8% [...]
Learn how the new minority share markets–and proposed SEC private company changes–affect value
Last month the SEC sent a letter to a lawmaker stating that the SEC is “moving toward easing decades-old constraints on share issues by private companies, in a sweeping review that could remake the way American start-ups raise capital,” says Jean Eaglesham in the Wall Street Journal. Learn what possible changes could alter both the [...]
Brad Pursel responds to FASB’s new exposure draft relating to goodwill impairment testing
Last week FASB published an exposure draft related to goodwill impairment testing under ASC 350 that, if adopted, would result in the below changes to GAAP. The stated objective of the Exposure Draft is to reduce the cost and complexity faced by financial statement preparers related to complying with the Step One goodwill impairment test [...]
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