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.

What Is A Certified Appraisal?

All of the organizations shown in the chart require a certification statement to be included in order to consider the report a “certified appraisal.”

Sample Certification Statement

An appraisal report may be considered a “Certified Report” when it is signed by a Certified Business Appraiser who is taking technical responsibility for its content.
[IBA Business Appraisal Standard 1.24].

The Value To You Of A Certified Appraisal

A certified appraisal prepared by certified/accredited appraisers in full compliance with the professional standards of the leading professional associations and USPAP will stand up to challenge by opposing parties.


Certified Business Appraisals