A Reviewer's Handbook to Business Valuation: Practical Guidance to the Use and Abuse of a Business Appraisal

Chapter 11

American Society of Appraisers (ASA) Business Valuation Standards

The ASA is a multidiscipline appraiser organization. However, the Business Valuation Committee of the ASA proposes and maintains, in conjunction with the ASA and USPAP, a set of business valuation standards. The ASA Business Valuation Standards (ASA BVS) “provide minimum criteria to be followed by business appraisers.”¹ Moreover, the ASA complies with and clarifies “the relevant portions of USPAP.”² The General Preamble to the ASA BVS requires that any departure from an ASA BVS be disclosed.³

Besides the nine ASA Business Valuation Standards, presently, there are two Statements on Business Valuation Standards (that clarify, interpret, explain, or elaborate on the Business Valuation Standards, and have the full weight of standards), one Advisory Opinion (that is not binding but illustrates applicability of the Business Valuation Standards in specific situations) and two Procedural Guidelines (that are not binding but that suggest certain procedures that may be used).⁴ Of note is the newest of the Procedural Guidelines, PG-2 Valuation of Partial Ownership Interests, adopted in November of 2009.

ASA BVS General Preamble

The General Preamble makes clear that the ASA BVS “provides minimum criteria to be followed by business appraisers”⁵ and that ASA business valuation members are required to comply with “the relevant portions of USPAP.”⁶ The General Preamble also requires that any departure from an ASA BVS ...