Business Valuation Reports
Types of Business Valuation Reports
| Standard | Highest Level | Other | Lowest Level |
| USPAP | Appraisal Report | Restricted Use | |
| ASA | Comprehensive | ||
| IBA | Formal | Letter | Limited |
| AICPA | Detailed | Summary | Calculation |
About The USPAP Reports
The Uniform Standards of Professional Appraisal Practice (USPAP) describe two general levels of appraisal reports, the “Restricted Use Appraisal Report” and the “Appraisal Report.” The essential difference between these options is in the content and level of information provided. The appropriate reporting option and the level of information necessary in the report are dependent on the intended use and intended users.
- When the intended users include parties other than the client, an Appraisal Report must be provided.
- When the intended users do not include parties other than the client, a Restricted Appraisal Report may be provided.
Custom Written Reports – Specific Use & Audience
Each report is custom written for a specific use and specific audience. Problems can occur when a client tries to use a report for a purpose or with an audience for which the report was not intended. The least problem is that the reader may not fully understand and accept the conclusions in the report. The worst potential problems can include lose of a lawsuit or rejection and penalties by the IRS.
The Types Of Reports Can Be Confusing
The names used to describe business valuation reports are confusing not only to clients but often to appraisers, particularly when an appraiser is responsible to more than one group of report standards. The descriptions here reflect the relative status of each term; however, the instructions that accompany each do make them identical. MBA prepares all of its reports in compliance with USPAP. Our principals are also bound to both the ASA and the IBA Standards. To meet these potentially competing needs, our reports conform to the highest and most inclusive of all the applicable standards.
Certification Statements
Each organization has its own form of the statement, but most are similar in general concept and content. Because we at MBA belong to multiple appraisal organizations, our certification statement incorporates the strictest requirements of each.