tango_gs

Which of the following best describes the implementation of private company valuation standards?

A) Industry groups mandate compliance.

B) Compliance is usually at the discretion of the appraiser.

C) The federal government mandates compliance.

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One of the challenges involved with the implementation of appraisal standards is that compliance is usually at the discretion of the appraiser because most buyers are still unaware of their existence.

tango_gs

Which of the following best describes the implementation of private company valuation standards?

A) Because most valuation reports are private, it is very difficult for appraisal organizations to ensure compliance to standards.

B) Appraisers voluntarily and periodically submit their reports for review by the local appraisal board.

C) Appraisers are required to periodically submit their reports for review by the local appraisal board.

One of the challenges involved with the implementation of appraisal standards is that because most valuation reports are private, it is very difficult for the organizations to ensure compliance to the standards.

tango_gs

Which of the following best describes the guidance on the use of private company valuation standards provided by appraisal organizations?

A) Guidance on the use of standards is not provided.

B) Guidance on the use of standards is necessarily limited due to the heterogeneity of valuations.

C) Technical guidance on the use of standards is widespread, as it is provided by both industry and consumer groups.

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One of the challenges involved with the implementation of appraisal standards is that although the organizations provide technical guidance on the use of their standards, it is necessarily limited due to the heterogeneity of valuations.

tango_gs

Which of the following statements related to the role of valuation standards in valuing private companies is most accurate:

A) No international valuation standards exist; countries generally each have their own standards for valuation.

B) Standards organizations provide technical guidance that ensures homogeneous valuations by those that use their standards.

C) Business appraisers in the U.S. and most other countries are not required to adhere to government-authorized valuation standards.

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In the United States, the Appraisal Foundation is a congressionally authorized provider of standards, however business appraisers are not required to adhere to the standards. Other challenges involved with valuation standards are: there are many different valuation standards; technical guidance on the use of standards is limited; it is difficult to ensure compliance to the standards; and valuation will depend on the definition of value used. (Study Session 12, LOS 43.l)

xinchow

That's pretty compliated stuff