New AICPA standard on valuation
30 Jul 2007
The Consulting Services Executive Committee of the American Institute of Certified Public Accountants (AICPA) announced today the release of a new professional standard on valuation services, Statement on Standards for Valuation Services No. 1 (SSVS No. 1) Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset.
The 76-page standard provides guidelines to CPAs for developing estimates of value and reporting on the results. It applies to AICPA members who perform an engagement that estimates the value of a business, business interest, security, or intangible asset for a wide range of purposes, including financial reporting. SSVS No. 1 is effective for engagements accepted on or after 1 January 2008.
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SSVS No. 1 specifies two types of engagements: valuation engagements and calculation engagements. For valuation engagements, two types of written reports are permitted – detailed reports and summary reports. For calculation engagements, one type of written report is permitted – calculation reports. Oral reports are allowed for all engagements under the standard. |
