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Business Valuation Reporting Standards 137Exhibit 4.1Permitted Valuation/Appraisal ReportsOrganizationOralReportLitigationException Name of Full ReportName of ‘‘OtherReport(s)’’NACVA No Yes A Written Report NoneUSPAP Yes No Appraisal Report Restricted Use AppraisalReportASA Yes No (1) ComprehensiveWrittenBusinessValuation ReportExpert ReportIBA Yes No Formal WrittenAppraisal ReportLetter Form WrittenAppraisal ReportPreliminary Report(Identified as ‘‘Limited’’)AICPA Yes Yes Detailed Report Summary ReportCalculation ReportFootnote:(1) ASA provides ‘‘Procedural Guidelines: PG-1 Litigation Support: Role of the Independent FinancialExpert,’’ which is non-authoritative.# Copyright 2007 by Donald P. Wisehart, ASA, CPA/ABV, CVA, MST. Used with permission.TAF (USPAP)USPAP permits the valuation specialist the choice of two written reports, the AppraisalReport, the contents of which are specified in Standards 10-2(a), or the Restricted UseAppraisal Report, the contents of which are specified in Standard 10-2(b). ‘‘Theessential difference between these options (Appraisal Report vs. Restricted UseAppraisal Report) is in the content and level of information provided.’’ 3 A RestrictedUse Appraisal Report must ‘‘state a prominent use restriction that limits use of thereport to the client and warns that the appraiser’s opinion and conclusions set forth inthe report may not be understood properly without additional information in theappraiser’s work.’’ 4 Also, many of the differences in the two written reports lie in theappraiser’s written form of either ‘‘summarizing’’ the content of his or her report in thecase of an Appraisal Report, or ‘‘stating’’ the content in the Restricted Use AppraisalReport. USPAP Advisory Opinion 28,Scope of Work Decision, Performance, andDisclosure, and Advisory Opinion 29, An Acceptable Scope of Work, give the appraiserfurther guidance as to USPAP’s Scope of Work Section requirements. 5ASAFor the most part, the ASA has but one written report, the Comprehensive WrittenBusiness Valuation Report, the reporting standards of which are at BSV-III. Of the fiveorganizations—NACVA, ASA, IBA, AICPA, and IRS—the ASA is the only one thatrequires that all valuation engagements of its members also comply with USPAP,
Exhibit 4.2 Report Standard Comparative ChartStandardNACVAASA(Full)AICPA(Full)AICPA(Summary)AICPA(Calculation)IBA(Full)IBA(Letter)USPAP10–20 (1)Engagement identification requirements 76 (2)Client USPAP 52 71 5.3 4.3 (a) (i)Subject being valued 4.3.b.1 p19 IV 52 71 76 5.3 4.3 (a) (iii)Interest being valued 4.3.b.2 p19 IV 52 71 5.3 4.3 (a) (iii)Valuation (or Effective) or4.3.b.3 p19 IV 52 71 76 5.3 4.3 (a) (vii)Calculation DateReport Date 4.3.b.4 p19 IV 52 71 76 5.3 4.3 (a) (vii)Type of report 52 71Standard of value defined 4.3.b.6 p19 IV 52 71 5.3 4.3 (a) (vi) (3)Premise of value 4.3.b.7 p19 IV 52 71 5.3 4.3 (a) (vi) (3)Purpose and intended use of the valuation 4.3.b.5 p19 IV 52 71 5.3 4.3 (a) (ii)Sources of information disclosed p19 IV 53 71 5.3 (a) (ix)Interviewees 53Site visit disclosure or lack of 53 (4) 1.19 (5)Analysis and development of(6) (7)value requirementsNature and history of business 3.4.a p19 V (8) 57 (9) 5.3 (10) (a) (iii)Economic conditions, present and outlook 3.4.b p19 V 57 5.3 (a) (ix)Past, current and future prospectsof business/industryFinancial Analysis of earnings/dividend capacityPast sales of interest in the businessbeing appraisedMarket prices of similarbusinesses publicly traded3.4.c/d/e p19 VI 58 5.3 (a) (ix)583.4.g p19 V 61 5.3 (a) (ix)4.3.b.14 p20 VII 61 (a) (ix)Similar business/interest sales p20 VII 61 5.3 4.3 (a) (ix)4.3.b.13 p20 VII 61 5.3 4.3 (a) (ix)Ownership, Size, nature, restrictionsand agreementsExtent the interest appraisedcontains ownershipExtent interest has or lacks elementsof marketabilityImplied p20 VII B 52 71 76 5.3 4.3 (a) (iv)Implied p20 VII B 52 71 76 5.3 4.3 (a) (v)138
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VALUATION FORFINANCIALREPORTINGFair
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VALUATION FORFINANCIALREPORTINGFair
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To our familiesnear and faryoung an
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PrefaceThe second edition of this b
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AcknowledgmentsTo Deanna Muraki, th
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xivAbout the Authorsappraiser with
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Valuation for FinancialReportingFai
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2 Valuation for Financial Reporting
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10 Valuation for Financial Reportin
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Appendix 1.2Pronouncements Excluded
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Intellectual PropertyAppendix 2.1On
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Appendix 2.2Significant Changes in
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# Copyright 2007 by FVG Holdings, L
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Exhibit 3.4 Target Company Business
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Exhibit 3.5 Target Company Business
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Exhibit 3.7 Target Company Valuatio
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Exhibit 3.7 (Continued)No. Job Titl
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Exhibit 3.8 Target Company Valuatio
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Page 113 and 114: Exhibit 3.10 Target Company Calcula
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Page 127 and 128: Exhibit 3.16 (Continued)Total Fair
Page 129 and 130: Exhibit 3.17 (Continued)2017 Taxabl
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Page 161 and 162: Exhibit 4.2 (Continued)StandardNACV
Page 185 and 186: Exhibit 4.3 Target Company Business
Page 187 and 188: Exhibit 4.4 (Continued)Actual Forec
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188 Valuation for Financial Reporti
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210 IndexBusiness Enterprise Analys
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212 IndexGoodwill (continued )111,
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214 IndexLong-termcapital, 71debt,
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216 IndexSecurities and Exchange Co
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