The AICPA is spreading the word about a new set of standards that will, for the first time, govern CPAs who provide valuation services.
Statement on Standards for Valuation Services No. 1 (SSVS No. 1), “Valuation of a Business, Business Ownership Interest, Security or Intangible Asset,” provides CPAs “with professional guidance that encourages consistency, transparency, communication, structured service levels and well-defined reporting options.”
According to the AICPA, the standards apply CPAs to who perform engagements that estimate the value of a business, business interest, security or intangible asset for numerous purposes such as sales transactions, financing, taxation, financial reporting, mergers and acquisitions, management and financial planning, and litigation.
Meanwhile, Practical Accountant’s Howard W. Wolosky advises CPAs to read the new standards closely, as he most certainly has. In the August edition of the magazine, Wolosky offers this detailed account of the new standards.
Read the standards for yourself here.