VS Section 100: Calculation Engagement and Report FAQs
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VS Section 100: Calculation Engagement and Report FAQs

3 years ago · 344.5 KB Download

Under the AICPA’s Statement on Standards for Valuation Services, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset (“VS Section 100” or “SSVS”), there are two types of engagements to estimate value: 1) a valuation engagement, and 2) a calculation engagement.

In a valuation engagement, a valuation analyst is free to apply the valuation approaches and methods he or she deems appropriate in the circumstances and expresses the results of the valuation as a conclusion of value which may be either a single amount or a range.

For a calculation engagement, the valuation analyst and the client agree on the valuation approaches and methods to be performed, and the valuation analyst calculates the value in compliance with the agreement. The valuation analyst expresses the results of these procedures as a calculated value that may be expressed as a range or as a single amount. A calculation engagement does not include all of the procedures required for a valuation engagement.

It is up to each valuation analyst to decide whether a valuation or calculation engagement and report are appropriate for a particular purpose of valuation and for the specific facts and circumstances of the engagement.

This detailed series of frequently asked questions (FAQs) provides non-authoritative answers to questions about when it is appropriate to perform calculation engagements and issue calculation reports.

Download the VS section 100 Calculation FAQs

File name: aicpa-vs-section-100-calculations-faqs.pdf

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