AICPA issues first statement on standards for valuation services.

• Position: News update

The AICPA's Consulting Services Executive Committee has released the first new professional standard on valuation services, Statement on Standards for Valuation Services No. 1, "Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset." The 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 numerous purposes, including sales transactions, financing, taxation, financial reporting, mergers and acquisitions, management and financial planning and litigation. SSVS No. 1 is effective for engagements accepted on or after Jan. 1, 2008.

"The AICPA developed the valuation standard to improve the consistency and quality of practice among its members who perform engagements that estimate values for various reasons," said AICPA President and CEO Barry Melancon. "Congress, government agencies and accounting regulators have recently focused their attention on appraisal issues--such activity shows the importance of valuation to the business community and individuals. The standard promotes greater transparency and provides our members with a set of guidelines in the unique context of a CPA practice."

SSVS No. 1 specifies two types of engagements: valuation engagements and...