AICPA proposed business valuation standards exposed for public comment.

• Author: Sherr, Eileen

The AICPA Consulting Services Executive Committee has released a draft of proposed business valuation (BV) standards for CPAs who provide BV services or whose engagements involve BV. Proposed Statement on Standards for Valuation Services is being exposed for public comment through June 15, 2005. The AICPA urges all members--including Tax Section members--to review and comment, as the proposed BV standards will apply to valuations performed starting in 2006, including those done for tax compliance or planning purposes. To download a copy, visit the "Exposure Drafts" section of the AICPA website, at hHp://aicpa.org/index.htm.

When to Apply the Standards

The standards might apply, for example, when (1) valuing u block of publicly traded stock, if the analysis includes consideration of a discount for blockage, lock-up or other contractual or market restrictions; (2) valuing nonpublicly traded stock; and (3) computing the fair market value of assets in a charitable remainder trust. The draft BV standards also include a Q&A...