Executive Summary
The AICPA issued the Working Draft of The AICPA Accounting and Valuation Guide: Business Combinations (the “Guide”) in September 2022.
The Guide is expected to be finalized later this year. Upon issuance of the final version of the Guide, valuation specialists will be expected to align purchase price allocations with the guidance provided.
While the Guide is considered non-authoritative accounting and valuation guidance, it nevertheless represents a collection of best practices and generally agreed-upon methodologies on these topics.
Gaining a full understanding of the updated guidance prior to the release of the final Guide will allow valuations specialists and their clients to seamlessly transition upon its release.
In this article, we outline topics in the Guide which contain new or evolving guidance. We also drill down on the guidance provided in Chapter 11: Selecting Valuation Approaches and Techniques for Acquired Intangible Assets.