Appraisal Guidance

Valuation Advisories

Valuation Advisories are documents that offer voluntary guidance on recognized valuation methods and techniques. The Appraisal Practices Board (APB), an independent Board of The Appraisal Foundation that existed between 2010-2017, was instrumental in issuing a number of Valuation Advisories during those years. 


Adopted Valuation Advisories

  • VFR Valuation Advisory #1: Identification of Contributory Assets and Calculation of Economic Rents
    With changing financial reporting requirements, there is increased interest in the effect of valuation conclusions on financial statements. This document sets forth best practices for the identification of contributory assets and calculation of economic rents. A Toolkit, available for download here, has been provided as a companion piece to this Advisory to provide additional sample spreadsheets that illustrate application of typical calculations in which contributory asset charges are used.

  • VFR Valuation Advisory #2: The Valuation of Customer-Related Assets
    This document is intended to provide helpful guidance for those who are preparing fair value measurements of customer-related assets. To accomplish this objective, this Advisory outlines best practices in the valuation of customer-related assets for financial reporting purposes, including but not limited to the following situations: business combinations, asset acquisitions, goodwill impairment testing, long-lived asset impairment testing, and reorganizations (i.e., fresh-start accounting).

  • VFR Valuation Advisory #3:  The Measurement and Application of Market Participant Acquisition Premiums
    This document presents helpful guidance on how to approach and apply certain aspects of the valuation process appropriate for measuring the fair value of controlling interests.

Valuation Advisories Under Development

The following Valuation Advisory is currently under development:

  • Valuation for Financial Reporting (VFR): VFR Work Group 4:  Valuing Contingent Consideration