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Business valuation basics
- Article from:
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The CPA Journal
- Article date:
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January 1, 2003
- Author:
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Copyright informationCopyright New York State Society of Certified Public Accountants Jan 2003. Provided by ProQuest LLC. (Hide copyright information)
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WITH THE RECENT DEVELOPMENTS IN FAIR-VALUE-- BASED GAAP ACCOUNTING, and the indication by FASB that we are heading toward a fair-value-- based balance sheet, the use of business valuation techniques is here to stay.
In the past, business valuation has generated a number of skeptics because of its basis in prognostications about the future. Historically, business valuation focused on tax matters, litigation among owners of small businesses, and bankruptcy. Financial accounting, on the other hand, has traditionally been based on historical data. The importance of business valuation in the information age resides in its use of the present value of estimated future cash flows in order to ...