AICPA Proposes Business Valuation Standards for CPAs
The American Institute of Certified Public Accountants (AICPA) today released for public exposure a draft of proposed Business Valuation Standards for comment by interested stakeholders. The proposed standards consist of guidelines for the development of valuation conclusions and reporting on the results. The standards would apply to AICPA members who perform valuation services in a variety of circumstances, including:
• mergers and acquisitions
• financial reporting
The users of CPA valuation services are expected to benefit from these standards, because they encourage consistency and disclosure in valuation development and reporting.
Once the standards are final, CPAs who are AICPA members will be required to comply with them when performing a valuation engagement that reaches a conclusion of value or an indication of value. The AICPA estimates that 25,000 CPAs currently provide business valuation and forensic and litigation services.
'Given the fact that an increasing number of CPAs are offering valuation services and that market demand for business valuations has experienced steady growth since the 1980s, the AICPA developed the proposed BV standards to improve the consistency and quality of practice among its members who perform BV engagements,' said Michael Crain, CPA/ABV, Chair of the AICPA Business Valuation Committee.
The American Institute of Certified Public Accountants (www.aicpa.org) is the national, professional organization of CPAs, with approximately 350,000 members, including CPAs in business and industry, public practice, government, and education; student affiliates; and international associates. It sets ethical standards for the profession and U.S. private auditing standards. It also develops and grades the Uniform CPA Examination.
For the Executive Summary and Exposure Draft of AICPA's draft Business Valuation standards, please click here.