Ray Rath of Globalview Advisors presented at the American Society of Appraisers (ASA) Advanced Business Valuation Conference held in Boca Raton, Florida. Valuations of portfolio company investments held by venture capital and private equity investment funds are an area where there is significant divergence in practice. As a result, the American Institute of CPAs (AICPA) task force, consisting of senior financial executives (financial statement preparers) at PE/VC funds, accountants and appraisers, is working on an exposure draft of a valuation guide. The guide will provide both conceptual discussions and a variety of valuation examples over the lives of investment holdings covering important concepts impacting fair value estimates. Ray is a member of the AICPA task force and presented on the current status of the task force efforts. More insights on this issue can be found in Ray’s “AICPA Private Equity/Venture Capital Accounting and Valuation Guide Update.”
The ASA is the oldest multidisciplinary appraisal nonprofit organization founded in 1936 and established in 1952 in the United States. ASA has become an effective professional affiliation of appraisers of all disciplines, working cooperatively to elevate the standards of the appraisal profession. ASA provides its members the most solid grounding in the appraisal principles that underlie all classes of property: real, personal, tangible and intangible. ASA is a global coverage organization active in Northern America (USA, Canada, Mexico), Europe, China, Japan and Australia.