An International Meeting of
the American Accounting Association

2005 Annual Meeting

August 7–10, 2005
San Francisco, California

Come to the City by the Bay!

CPE Session 5: Saturday, August 6, 8:00 AM – 12:00 PM

Current Developments in Business Valuation

Description/Objectives:
Introduction: Business valuation is one of the most rapidly evolving areas of professional practice. Historically, business valuation has been an issue primarily for CPAs dealing with gift and estate taxes. However, with the promulgation of FAS No. 142, various FASB Staff Announcements, development of the AICPA's Business Valuation and Forensic and Litigation Services Community and its associated Accredited in Business Valuation credential, business valuation has become an important, mainstream practice important to tax professionals, auditors, and financial accountants.

Description: This course will cover both introductory and advanced topics in business valuation.

Content: Topics to be covered in the course include basic information such as: transactions and events requiring a business valuation, Fair Market Value (tax valuations) versus Fair Value (FAS No. 142 and other legal/statutory valuations), current guidelines from the FASB, AICPA, SEC, and IRS.

We will also cover new developments and advanced topics including: recent tax court cases, recent FASB Staff Announcements, the AICPA’s Practice Aid, and the quantification of discount rates and discounts for lack or marketability and control.

We will also be discussing the appropriate coverage of this material in financial accounting, tax, and audit courses.

Objectives: The course has two primary objectives. The first objective is to provide participants with a solid understanding of the rapidly evolving area of business valuation. The second objective is to assist professors in developing appropriate assignments, lectures, and materials for their various tax, financial, and audit courses.

How Objectives Will Be Met: The course format will start with a presentation of current authoritative literature and developments, followed by a lecture/question- and-answer period designed to fully develop the more technical topics such as calculation of minority discounts. Finally, we will hand out a business valuation case study. While we do not anticipate having time to cover the study in class, it should provide participants with a case around which they can further develop class materials and assignments.

Format/Structure:
The course format will start with a presentation of current authoritative literature and developments, followed by a lecture/question-and-answer period designed to fully develop the more technical topics such as calculation of minority discounts. Finally, we will hand out a business valuation case study. While we do not anticipate having time to cover the study in class, it should provide participants with a case around which they can further develop class materials and assignments.

Intended Audience:
All accounting faculty with an interest in business valuation, regardless of background or area of expertise.

Presenters:
Keith Sellers, Fort Lewis College
Robert Ricketts, Texas Tech University

* Denotes special requirements or prerequisite