The American Institute of Certified Public Accountants (AICPA) recently established Standards for Valuation Services (SSVS) No. 1, which applies to members of both the Kansas and Missouri Boards of Accountancy.
Enacted January 1, 2008, the standard establishes rigorous standards for CPAs who value a business interest. Tax engagements in which an accountant must adhere to the SSVS No. 1 include:
purchase price allocations
charitable contribution deductions
corporate restructuring
S Corporation conversions
miscellaneous tax planning matters.
The AICPA requires that, in addition to analyzing company financials, accountants know how and when to apply various methodologies (asset, income, market) and discounts (DLOM, DLOC).
Because Allied focuses only in valuation and M&A, we stay current with the latest methodologies, rules of thumb, theories and standards as well as what fair market value is being observed in real world transactions. The busy CPA may find that tax law and client demands are sufficient to keep occupied and that in-depth study of valuation theory and M&A statistics is simply not feasible. Allied can help by using experience and knowledge to consult or by preparing a valuation report for your client.
