Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Matrimonial StrategistKickerFeaturesTopicsCommercial LawSectionsNewsLJN Newsletters

New Business Valuation Standards for Accountants

By Robert C. Schlegel and Jason S. Thompson
November 27, 2007

In June 2007, the American Institute of Certified Public Accountants (AICPA) approved new business valuation standards effective for assignments accepted after Jan. 1, 2008 for all member accountants. The AICPA's Statement on Standards for Valuation Services No. 1 (SSVS 1), 'Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset,' is a solid, well-reasoned set of principles on how to perform and report a valuation analysis. SSVS 1 complements other business valuation standards, such as the Uniform Standards of Professional Appraisal Practice (USPAP) and standards already in force by the American Society of Appraisers (ASA), Institute of Business Appraisers (IBA), and the National Association of Certified Valuation Analysts. (NACVA). These latter appraisal-oriented organizations have member numbers ranging from about 5,000 to 50,000, and include many accountants who regularly undertake valuation assignments for marital dissolution purposes.

The AICPA, however, with about 330,000 CPAs, is by far the largest organization with membership in every state. Previously, only AICPA members who were also members of one of the other organizations were required to adhere to the valuation standards of that other organization. The new AICPA standard will require all of its individual and firm members who are involved in business valuations to follow the newly issued standards. State Boards of Accountancy are likely to adopt the standards too, further obligating CPAs who may not be members of the AICPA.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.