Calculation Engagement vs Valuation Engagement
Calculation Engagement vs Valuation Engagement.
In April, QuickRead featured some analysis ofÂ In Re: Marriage of HagarÂ in ourÂ Case Lawâ€”StateÂ section.Â At issue in Hagar was the difference between aÂ Calculation EngagementÂ and aÂ Valuation Engagement.Â The Calculation Engagement the husband in the case presented was deemed unsuitable by a judge, in this particular case, because it the valuator admittedly didnâ€™t â€śuse judgment.â€ť
NACVA member Charlotte Reith, CPA, CVA, CFF, ofÂ The Reith CompanyÂ in Pasadena, CA wrote in to say she thought our analysis â€śis giving calculation engagements a bad name and is misleading.Â A rule of thumb valuation [used in Hagar] is not a calculation of value.â€ťÂ Is this case an anomaly? Were the facts in Hagar not relevant to drawing broad conclusions about the legitimacy of calculation engagements vis a vis a full valuation engagement?Â Ms. Reith promises to write us more on the issue. Meanwhile, let us know whatÂ you think.
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Case Lawâ€”StateÂ in April was one of the most-read sections in that particular issue and that wasnâ€™t an anomaly.Â Â Case Lawâ€”StateÂ andÂ Case Lawâ€”FederalÂ both tend to be among our top-read sections each issue.Â That makes us wonder:Â How many of you are lawyers?Â Â And how relevant and valuable are recent court precedents to work you do regularly in valuation and forensics?Â Â Some readers have suggested that more and expanded information on case law from a larger sampling of states might be helpful.
Among the otherÂ QuickReadÂ sections that regularly appear among our most-read areÂ Forensic Accounting,Â Business Appraisal Practice (BAP)Â whitepapers, and links toÂ NACVA HQ NewsÂ andÂ The Association News.Â Â If you have ideas for additional topics on these or other subjects youâ€™d like to see us cover,Â write us.