Determination of Value - Appraisal Guidance on Developing and Supporting a Credible Opinion

Informationen zum Autor Francisco "Frank" ROSILLO, CPA, ABV, ABAR, CBA, CVA, CFE, CFF, CFFA, is the managing director of the Valuations and Forensics Advisory, LLC. Serving an international clientele, the firm provides business valuations, mergers and acquisitions transactions, and forensic accounting advisory services. Rosillo is a frequent national lecturer and trainer in valuation and forensic accounting topics. He has authored Institute of Business Appraisers (IBA) and National Association of Certified Valuators and Analysts (NACVA) courses and the practice aid, Business Appraisal Review. Frank also teaches a five-day NACVA Appraisal Review Workshop and is a member of the Board of Governors of the Institute of Business Appraisers. He has been the recipient of several CPA accounting professional awards in business valuations and litigation support. His financial expert witness experience includes cases in federal and state courts. Klappentext How to develop and support a credible opinion of value based on a foundational frameworkThis book provides knowledge and guidance to valuation practitioners on achieving a new level of professionalism and credibility, as well as to those stakeholders in the valuation process in need of assessing the credibility of an appraiser's work product for decision-making purposes. It introduces a well defined framework of key credibility concepts and procedures at each step of the appraisal process, including reasonableness tests, valuation methodologies, financial analysis, economic and industry analysis, engagement planning, and informed judgment.* Provides needed guidance to valuation practitioners to enhance their valuation practice and improve the credibility of the appraiser's work product* Offers guidance to stakeholders in the valuation process in need of assessing the credibility of an appraiser's work product for decision-making purposesGet foundational framework appraisal advice with the proven guidance found in Determination of Value. Zusammenfassung Provides knowledge and guidance to valuation practitioners on achieving a new level of professionalism and credibility, as well as to those stakeholders in the valuation process in need of assessing the credibility of an appraiser's work product for decision-making purposes. Inhaltsverzeichnis Preface xi Acknowledgments xiii Chapter 1: The Problem 1 In Search of a Truth 1 The Assurance Expert 4 Credibility Is Not Synonymous with Truth 7 Where Do We Go from Here? 8 Chapter 2: The Solution 9 Toward a Defi nition of Credibility 9 The Attributes That Make You Credible 10 Operational Credibility Attributes 11 Personal Credibility Attributes 19 General Observations about "Credibility" 21 Credibility Is Not Synonymous with Truth 23 Don't Confuse Opining with Decision Making 25 Beware of Black Box Opinions 26 Conclusion 26 Chapter 3: The Credibility Pyramid and the Importance of a Well-Defined Analytical Process 29 The Importance of Process 29 The Valuation Process 31 The Credibility Pyramid 34 Three Problem-Solving Phases 36 Conclusion 41 Chapter 4: Pyramids, Not Castles 43 Why Is Credibility Important? 44 Reasonable Assurance 47 Generally Accepted Practices 50 Generally Accepted Practices Lead to Uniformity and Professional Consensus 54 Analytical Gaps 55 Informed Judgment 56 Conclusion 59 Chapter 5: Climbing the Credibility Pyramid 61 The Importance of Revenue Ruling 59-60 61 Identification of Key Pre-Engagement Parameters 63 Planning to Acquire Knowledge about the Subject 65 General Planning Considerations 69 The Importance of the Standard of Value as You Climb the Pyramid 79 Self-Ass...

List of contents

Preface xi
 
Acknowledgments xiii
 
Chapter 1: The Problem 1
 
In Search of a Truth 1
 
The Assurance Expert 4
 
Credibility Is Not Synonymous with Truth 7
 
Where Do We Go from Here? 8
 
Chapter 2: The Solution 9
 
Toward a Defi nition of Credibility 9
 
The Attributes That Make You Credible 10
 
Operational Credibility Attributes 11
 
Personal Credibility Attributes 19
 
General Observations about "Credibility" 21
 
Credibility Is Not Synonymous with Truth 23
 
Don't Confuse Opining with Decision Making 25
 
Beware of Black Box Opinions 26
 
Conclusion 26
 
Chapter 3: The Credibility Pyramid and the Importance of a Well-Defined Analytical Process 29
 
The Importance of Process 29
 
The Valuation Process 31
 
The Credibility Pyramid 34
 
Three Problem-Solving Phases 36
 
Conclusion 41
 
Chapter 4: Pyramids, Not Castles 43
 
Why Is Credibility Important? 44
 
Reasonable Assurance 47
 
Generally Accepted Practices 50
 
Generally Accepted Practices Lead to Uniformity and Professional Consensus 54
 
Analytical Gaps 55
 
Informed Judgment 56
 
Conclusion 59
 
Chapter 5: Climbing the Credibility Pyramid 61
 
The Importance of Revenue Ruling 59-60 61
 
Identification of Key Pre-Engagement Parameters 63
 
Planning to Acquire Knowledge about the Subject 65
 
General Planning Considerations 69
 
The Importance of the Standard of Value as You Climb the Pyramid 79
 
Self-Assessment Tools 83
 
Stepped Reading 87
 
Conclusion 88
 
Chapter 6: How to Develop and Report Your Opinion 91
 
Practice Presenting Your Written Findings Orally 91
 
Valuation Adjustments 102
 
Description of a Benchmarking Methodology Used by Valuation Analysts 106
 
Benchmarking: Relative Weights and Qualitative Analysis 111
 
Make Sure There Are No Analytical Gaps in the Development and Derivation of Growth Rates 115
 
Incorporating Prospective Information That Is Presented into Your Opined Results 119
 
Reporting Your Opined Results 126
 
Conclusion 129
 
Chapter 7: Reasonableness Tests 131
 
Determining Reasonableness 132
 
Example 1: Derived Estimate of Value 136
 
Example 2: Guideline Company Method 139
 
Example 3: Use of Market Multiples 144
 
Example 4: Federal Tax Compliance 145
 
Conclusion 146
 
Chapter 8: Enhancing the Integrity of Your Opinion 149
 
Understanding the Credibility Threshold 150
 
Understanding the Scope Undertaken 152
 
Understanding Analytical Responsibilities and the Impact of Matter/Cause/Effect Analysis 154
 
Conduct Your Analysis within the Parameters of the Economic Reality Relevant to the Facts and Circumstances 156
 
Maintain a High Level of Professional Skepticism and Engagement Awareness 157
 
Review Your Analytical Process for Relevance and Typical Common Errors 160
 
Be Ready to Respond to Ethical Challenges 162
 
Enhancing the Integrity of Your Opinion When at Trial or in Hearings 163
 
Enhancing the Integrity of Your Opinion When at Deposition 166
 
Conclusion 166
 
Chapter 9: Reviewing the Work of Others 169
 
Review Engagement Procedures to Consider 170
 
Preparing a Document Request for a Review Engagement 172
 
The Role to Be Assumed: Reviewing Expert or Reviewing Consultant 173
 
Limiting Conditions and Assumptions 174
 
Determining an Appropri

Product details

• Authors: F Rosillo, F. Rosillo, Francisco Rosillo, Frank Rosillo, Rosillo Frank
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 17.05.2013
• EAN: 9781118287897
• ISBN: 978-1-118-28789-7
• No. of pages: 240
• Series: Wiley Corporate F&A; Wiley Corporate F&A (Hardcover; Wiley Corporate F&A
• Subjects: Social sciences, law, business > Business > Business administration; Rechnungswesen, Bewertung, Accounting, Valuation