The following major elements are required in the statement on standards for
valuation services (SSVS):
• Professional Competence – A valuation analyst should have a solid
understanding of valuation principles and theory, as well as the ability to
identify, gather, and analyze data, consider and apply appropriate
valuation approaches and methods, and use professional judgment in
developing a value estimate (AICPA, 2007).
• Establishing an Understanding with the Client – The valuation analyst
should establish an understanding with the client, and whether it is
written or oral, the valuation analyst should modify the understanding if
circumstances arise during the engagement that necessitate doing so
(AICPA, 2007).
• Objectivity and Conflict of Interest – The principle of objectivity
imposes the obligation to be impartial, intellectually honest,
disinterested, and free of conflicts of interest. Where a potential conflict
of interest exists, a valuation analyst must make the required disclosures
and obtain consent under the "Conflicts of Interest" interpretation
(AICPA, 2007).
Reference:
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
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