The AICPA Statement on Standards for Valuation Services (SSVS-1)defined terms that you should be aware of when looking for appraisal estimates and communicating with business valuation professionals.
Refers to an engagement or any part of an engagement
(for example, a tax, litigation, or acquisition-related engagement)
that involves estimating the value of a subject interest.
For financial reporting purposes only, the price that would be
received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
The price, expressed in terms of cash equivalents,
at which property would change hands between a hypothetical
willing and able buyer and a hypothetical willing and able seller, acting
at arms length in an open and unrestricted market, when neither
is under compulsion to buy or sell and when both have reasonable
knowledge of the relevant facts.
The value of a business enterprise that is expected to continue to operate into the future. The intangible elements of Going Concern Value result from factors such as having a trained work force, an operational plant, and the necessary licenses,
systems, and procedures in place.
The net amount that would be realized if the business is terminated and the assets are sold piecemeal. Liquidation can be either “orderly” or “forced.”