NACVA and IBA Memberships Ratify Standards Unification 

The memberships of the National Association of Certified Valuation Analysts (NACVA) and the Institute of Business Appraisers (IBA) have voted to ratify the new principles-based standards developed jointly by a team representing both organizations.  The new "principles-based" standards are in parity with the AICPA’s SSVS No. 1.  The results of the vote were:

This represents “one giant leap” for the business valuation community at large.  In December 2009, representatives of each organization (four from NACVA and four from IBA) met over a weekend to review, compare, contrast, discuss, and analyze the standards, with the objective of compiling one unified set that would be shared with all members for comment and ultimate adoption.  The overriding purpose of this effort is to take the first step towards eventual profession-wide unification of business valuation (BV) standards.  This goal, while shared by the vast majority of professionals in our and other BV organizations, has been the subject of various attempts over the years, all of which resulted in failure.  

The leadership and governing bodies of both NACVA and IBA have stated that it is in the best interest of our members, and all practitioners in the profession, to work towards a profession-wide unification of standards. We believe that this initial effort, by our two organizations, has set a fine example and should encourage the remaining members of the profession to join us in this effort.  The initial draft was exposed to members of both organizations for comment, and a second joint NACVA/IBA task force evaluated and reconciled the comments received from members.  

NACVA and IBA would like to thank the members who participated in this effort.  These members are:

The organizations are responsible for providing their own independent interpretations of the standards and communicating them to their respective memberships via Q&As, practice aids, or other appropriate interpretive documentation. 

These standards become effective June 1, 2011.  For a copy of the new standards click here.  Early adoption is recommended.  If you begin a valuation/appraisal prior to the effective date, the use of the previous/old standards is acceptable.

Sincerely,

Howard A. Lewis, MS, ABAR, AVA
Executive Director
Institute of Business Appraisers
 

¹   NACVA’s—Executive Advisory Board
²   IBA’s—Board of Governors