CPA expert 2002 summer

              CPA
Expert
AICPA Newsletter for Providers of Business Valuation & Litigation Services
Summer 2002
Contents
2 Issues to Consider in Evaluating a Reasonable Royalty
6 Applying the Income Approach in Quantifying Premiums and Minority Discounts
8 Marketing Litigation Services: Some Special Issues
10 Protecting Clients’ Privacy
11 FYI
AICPA BUSINESS VALUATION STANDARDS SLATED FOR PRE-EXPOSURE COMMENT
Final standards will apply to all CPAs engaged in business valuations.
WINNER
APEX®
AWARDS FOR PUBLICATION EXCELLENCE
AICPA
James C. H. Feldman, CPA/ABV
CPAs who perform business valua­tions will soon have authoritative standards to follow. The AICPA Busi­ness Valuation Subcommittee and its Business Valuation Standards Task Force expect to release a draft of the new standards for pre-exposure com­ment by late Summer 2002.
The draft will be sent to all CPAs who have earned the AICPA’s Accredited in Business Valuation (ABV) designation, the AICPA Con­sulting Services Executive Commit­tee, the AICPA Business Valuation Subcommittee, the Business Valua­tions Standards Task Force, represen­tatives of public accounting firms and the Internal Revenue Service, and other individuals and groups.
A revised draft of the standards will then be issued for public comment within another six months. The stan­dards will be published by the Busi­ness Valuation Subcommittee, chaired by Thomas E. Hilton, CPA/ABV, on behalf of the AICPA Consulting Ser­vices Executive Committee.
ALL CPAs MUST COMPLY
When the new standards are issued, they will apply to all CPAs engaged in business valuations, not only to CPAs who have earned the ABV designation or to CPAs with business valuation credentials from other organizations.
The Standards Task Force, chaired by Edward J. Dupke, CPA/ABV, developed the standards draft after
intensive analyses of standards issued by the American Society of Apprais­ers, the National Association of Certi­fied Valuation Analysts, the Institute of Business Appraisers, and other organizations.
All CPAs will still be bound to com­ply with the AICPA Code of Profes­sional Conduct rules 102 and 201 and the Statement on Standards for Con­sulting Services No. 1. The new busi­ness valuation standards will provide CPAs with definitive rules for provid­ing services in the growing business valuation profession. They will also aid in affirming the ABV as the pre­mier business valuation credential.
For more information about the standards, contact James C. H. Feld­man, CPA/ABV, AICPA Manager of Business Valuation and Litigation Services atjfeldman@aicpa.org. For information about obtaining the ABV credential, contact Madelaine Feld­man, AICPA Examinations Coordina­tor, at mfeldman@aicpa.org.
Letters to the Editor
CPA Expert encourages readers to write letters on business valuation and litigation services issues and on published articles. Please remember to include your name and telephone and fax numbers. Send your letters by e-mail to wmoran@aicpa.org.