Why valuators need accounting know-how

Description

Abstract: Accounting and appraisal are interrelated disciplines. After all, financial statements are the foundation for valuing a business. So it’s imperative that valuators understand accounting terminology and how to adjust for material differences in accounting methods. This brief article discusses how different accounting methods can affect a valuation. Experienced valuators ensure they make the proper adjustments to avoid comparing apples to oranges when determining a business’s value.