Change in Report Submission Requirements Effective January 1, 2008

At the BV Committee meeting on July 15, 2007, a change was made in the report submission requirement for one of the two business valuation reports that must be submitted as part of the advancement process. This change will be effective for reports received by ASA for consideration or after January 1, 2008. One of the two reports submitted must contain the use of both the income AND the market approaches in the same report (this must be in a report for an operating business, not of a holding company, FLP or intangible asset valuation). Based on the facts and circumstances, it is up to the candidate as to determine which methods are applicable -- e.g., merger and acquisition method and/or guideline public company method under the market approach, and the capitalization of earnings method or the discounted future cash flow/earnings method under the income approach. However, the report must contain at least on method under each of those two approaches.

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