Three of the major elements required in the statement on standards
for valuation services (SSVS) are...
• Professional Competence – "A valuation analyst should possess
a level of knowledge of valuation principles and theory and a
level of skill in the application of such principles that will enable
him or her to identify, gather, and analyze data, consider and
apply appropriate valuation approaches and methods, and use
professional judgment in developing the estimate of value
(whether a single amount or a range)" (AICPA, 2007).
• Establishing an Understanding with the Client – "The valuation
analyst should establish an understanding with the client,
preferably in writing, regarding the engagement to be
performed. If the understanding is oral, the valuation analyst
should document that understanding by appropriate
memoranda or notations in the working papers" (AICPA, 2007).
• Objectivity and Conflict of Interest – "Objectivity is a state of
mind. The principle of objectivity imposes the obligation to be
impartial, intellectually honest, disinterested, and free from
conflicts of interest. Where a potential conflict of interest may
exist, a valuation analyst should make the disclosures and obtain
consent as required by the “Conflicts of Interest" interpretation
under the “Integrity and Objectivity Rule” (AICPA, 2007)
The SSVS elements are very similar to those of other standard setting
bodies because they all strive to provide guidelines/rules as well as
improve the consistency and quality of a practice. These elements
allow for consistent and comparable reporting.
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
