AICPA members* are required to follow the Statement on Standards for Valuation Services No. 1 (SSVS No. 1), Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset when they perform engagements to estimate value that culminates in the expression of a conclusion of value or a calculated value. SSVS No. 1 is included in the FVS Online Professional Library under VS Sections 100 and 9100.
This toolkit was designed to provide non-authoritative guidance on the development of valuation or calculation engagements as well as the development of engagement letters and reports in accordance with SSVS No.1.
For more information on determining whether SSVS No. 1 compliance is required, download the following resources:
*Non-AICPA members should verify with their state boards of accountancy for regulations that state that CPAs must comply with SSVS No. 1 (VS Sections 100 and 9100).
Not an FVS Section member? Join the FVS Section today and gain access to this toolkit.
Customizable Valuation and Calculation Engagement Letter Templates
These customizable engagement letter templates have been supplemented with best practice recommendations to ensure the letters are as effective as possible in clearly documenting the terms of the engagement.
- Customizable Engagement Letter Template for a Valuation Engagement
- Customizable Engagement Letter Template for a Calculation Engagement
Parts of these sample engagement letters were taken from Jim Hitchner’s Business Valuation Standards Compliance Toolkit, Valuation Products and Services, LLC, www.valuationproducts.com , ©2009 Financial Valuation Solutions, LLC. All rights reserved. Used with permission.
SSVS No. 1 Development and Reporting Compliance Checklists
The following development and reporting compliance checklists provide valuation and calculation engagement and reporting considerations pursuant to SSVS No. 1.
DEVELOPMENT COMPLIANCE CHECKLISTS
Scope of SSVS No. 1 Development Compliance Checklists
- Calculation Engagement Development Compliance Checklist
- Valuation Engagement Development Compliance Checklist
- Valuation/Calculation Engagement Development Compliance Checklist - Addendum for Intangible Assets
Reporting Compliance Checklists
Scope of SSVS No. 1 Reporting Compliance Checklists
Sample Valuation Reports
Samples of the types of written reports that a valuation analyst may use to communicate the results of an engagement to estimate or value pursuant to SSVS No. 1 for a valuation engagement, a detailed report or a summary report, are downloadable in PDF format.
Most of the assumptions and limiting conditions in the above reports were taken from Jim Hitchner’s Business Valuation Standards Compliance Toolkit, Valuation Products and Services, LLC, www.valuationproducts.com , ©2009 Financial Valuation Solutions, LLC. All rights reserved. Used with permission.
Notice to Readers
FVS sample engagement letters, checklists and sample reports are designed as educational and reference material for the members of the FVS Section and others interested in the subject. They do not establish standards or preferred practices.
Although much thought and effort have gone into the development of these tools, they are subject to change. These tools are issued as drafts only, and you retain responsibility for their final content. Please review them carefully and make any changes necessary for your specific use.