After reviewing the SSVS, a few of the major elements required stood
out to me. The first was "Objectivity and Conflict of Interest". This is
important because if you are too close to a subject of evaluation, such
as your own company, you may have a biased influence in the
valuation if even subconsciously. (AICPA, 2007) I also felt this
standard along with several others aligned with GAAP standards as
well legal and ethical standards for tax professionals
Another element that drew my attention was "Scope Restrictions and
Limitations". It is important to know if there are limitations in the
information provided or available for the analysis and valuation, and if
so this is noted in the final valuation. (AICPA, 2007) If you have
limitations on information provided, you may not be able to make an
accurate valuation at all, and it is important to know this from the
beginning and determine whether an accurate valuation can even be
made from the information available.
Then the element of "Valuation Approaches and Methods" stood out
to me as well. This was interesting in how there are several different
approaches valuations may be made from, income approach, asset
approach, or market approach. Depending on the purpose of the
valuation, you may look at the information from different angles and
provide deferent information based on what the purpose is for the
valuation. (AICPA, 2007)
References:
AICPA. (2007, June). Statement on Standards for Valuation Services (VS
Section 100).
https://www.aicpa.org/resources/download/statement-on-
standards-for-valuation-services-vs-section-100
