The Appraisal Foundation, an organization that provides voluntary guidance on recognized valuation methods and techniques for the valuation profession, issued its fourth Valuation in Financial Reporting (VFR) advisory on contingent consideration. Lynne Weber, Managing Director, and Gary Raichart, Director, in the Strategic Valuations practice at Duff & Phelps served as subject matter experts and co-authors on the Working Group for the guide.
The purpose of this valuation advisory is to outline best practices in the valuation of contingent consideration, providing support for and insights into how to quantify the value of a future payment that is dependent on the outcome of uncertain future events. While this valuation advisory is voluntary, it provides business valuation professionals, and those who use their services, with reasonably consistent and supportable fair value conclusions.
Read the Financial Reporting Valuation Advisory for Contingent Consideration.