The US AICPA has recently approved the first US Statement of Valuation Standards (SSVS #1) effective for US CPAs valuing certain businesses or intangibles. It requires the valuation work done by these trusted advisors to meet the same quality standards you have come to expect from CPAs.
Accounting for Value
With expansion of International Standards and over 40 United States accounting standards alone dealing with fair market value converging with International Accounting Standards, it has become more important than ever to have a relationship with a firm that not only understands fair market value reporting issues but one that provides independence of the highest quality.
Specific needs of our clients include:
This US standard promulgates primarily application guidance for the other fair value standards, it opens wide the door to fair value possibilities in financial reporting. Contact your Parro International representative and find out what this new standard means to you and how we can support your transition.
While not instituting any new element FMV requirements, SFAS 157 is arguably one of the most far reaching standards. Its application anytime other FASB standards require fair value measurements gives it far reaching consequences. From defining fair value for reporting (causing a special expertise not often found in general valuation experts) to establishing a required approach for measuring fair value, by prioritizing the inputs to fair value, the valuation hierarchy must be thoroughly known by your selected valuation firm. With CPA experience on staff, we can provide the documentation to meet any of your FMV disclosure requirements.
SFAS 141 & 142
US SFAS 141(R) will change the manner of identifying and measuring intangible assets. The focus is moving from that of a buyer to that of a market participant. A buyer will recognize all assets that possess a value whether or not the buyer will retain or utilize the intangible assets it acquires. This change in perspective will require thorough analysis of all potential assets even those that previously were thought to be of no interest to targeted buyers.
Intangible Asset Categories
Search by Keyword
SEC staff are now saying that coordination between the reporter and the valuator is a key issues which is often times lacking. "A qualified valuator knows the applicable rules in varying circumstances but may not know all of the circumstances of the valuation situation. There needs to be a close working relationship between valuator and reporter. The reporter needs to understand what went into the valuation - the assumptions and estimates - while the valuator needs to understand the reason for and goal of the valuation."