Skip To Main Content
Directory      Join Now

Member Login

My Account Login



Forgot your Password?
Search
NACVA logo
  • Association
    • NACVA's Beginnings
    • NACVA's Mission
    • 30 Years of Firsts
    • Benefits of Membership
    • Classifications of Membership
    • Ultimate Membership
    • Become a Member
    • NACVA Boards
    • NACVA Committees
    • NACVA Support Groups
    • Professional Standards
    • Alliances/Partners
    • Press Releases
    • Pacesetter® Awards Program
    • Privacy Policy
    • Online Directory
    • Job Opportunities Board
    • Headquarters Directory
    • NACVA Mobile App
    • Contact Us
    • Feedback
    • Policy on Non-Discrimination
    • No Login | Secure Payment Submission
    • The Future of the Business Valuation Profession
  • Certifications
    • Accredited
    • Business Valuation and Financial Forensics Credential Comparison Chart
    • Certified Valuation Analyst (CVA)
    • Master Analyst in Financial Forensics (MAFF)
    • Accredited in Business Appraisal Review (ABAR)
    • Certified Business Appraiser (CBA) and Master Certified Business Appraiser (MCBA)
    • Recertification
  • Professional Education
    • Full Course Schedule
    • Credentialing Training
    • Certificate of Educational Achievement Training
    • Introduction Training
    • Business Valuation Training
    • Financial Litigation Training
    • Programs for Attorneys
    • Practice Management Training
    • Exit Planning Training
    • Software and Database Training
    • Super Conferences
    • Hotel Accommodations
    • NASBA Sponsorship
    • Cancelation Policy
    • Consultants' Training Institute Certification and Training Catalog
  • Online Learning
    • Virtual Course Schedule
    • Around the Valuation World®
    • Around the Valuation World® International
    • CPE On-Demand Courses
    • Self-Study Courses
    • Surgent CPE Self-Study
    • Important Virtual Course Information—FAQs
    • Virtual Course Cancelation Policy
  • International
    • International Chapters
    • Global Professional Standards Resources
    • Around the Valuation World® International
    • EACVA’s 16th International Business Valuation Conference 2023
    • European Business Valuation Magazine (EBVM)
    • Kroll Cost of Capital Navigator: International Cost of Capital Module
    • Kroll International Industry Benchmarking Module
  • Publications
    • Association News
    • The Value Examiner
    • Journal of Forensic and Investigative Accounting
    • QuickRead
    • Around the Valuation World®
    • Around the Valuation World® International
    • European Business Valuation Magazine (EBVM)
    • Call for Authors
  • Get Involved
    • State Chapters
    • International Chapters
    • Mentor Support Exchange
    • Support Group Application
    • Publish An Article
    • Thomas R. Porter Lifetime Achievement Award
    • 2021 NACVA Honors
    • 30 Under Thirty
    • 40 Under Forty
    • Industry Titans
    • NACVA LinkedIn
    • NACVA on Instagram
    • NACVA Video Network
    • YouTube Live Q&A Broadcasts
    • Join Our E-mail List
  • Store
  • Home
  • Publications
  • Association News
  • Value of Professional Standards and Ethical Behavior—Second Quarter 2019

Value of Professional Standards and Ethical Behavior—Second Quarter 2019

NACVA Association News

Steven McDonald

The Value of Professional Standards and Ethical Behavior: My Opinion

By Steven McDonald, CVA
Former NACVA Ethics Oversight Board (EOB) Member
 
In June, I recently completed a three-year term with the NACVA’s Ethics Oversight Board (EOB), which included serving as Chairman this past year. This June will also mark four and one-half years as a CVA with the NACVA, but also nearly three decades of providing economic and financial consulting to both public and private clients. I am very grateful for having the opportunity to serve on the EOB because of the insight it has provided on the value of Professional Standards.

I imagine that when most individuals hear the word “ethics” or “ethical”, they think of moral issues like stealing, cheating, or lying. But ethics in business is also about consistent policies and practices that professional individuals can choose to follow to more likely create public approval and acceptance. As a member of the NACVA, we make a commitment to comply with NACVA’s Professional Standards, which are more than committing to professional integrity and objectivity. The guidance provided in these principles-based Standards is critical for using professional judgement when performing valuation services.

My consulting career, prior to becoming a member of NACVA and a CVA, included many assignments that would be considered “valuation services”—determining the value of a stream of income is not a new concept. In fact, historical research suggests that discounted cash flow (DCF) calculations have been used in some form as early as the first time money was provided as a loan with interest; possibly ancient Egypt. While an industry comprised of professionals, organizations, and supporting agencies for valuing business enterprises (as opposed to real property) has grown significantly over the past decade, not all assignments have some form of legal or regulatory requirement for valuation services. For example, most public entities can buy or sell income producing assets, such as utility systems, without a certified business enterprise valuation.

So why become a CVA if I can still assist clients with my opinion of a businesses’ value solely based on my expertise and experience in economics and finance? Frankly, consistently producing valuation services that comply with the NACVA Professional Standards has significantly improved the value of my services. I believe the quality of the economic and financial analysis is the same, but the approaches to using professional judgement that comply with the NACVA Professional Standards has made me a better appraiser. Every assignment is unique and when considering every facet of value, not all assumptions or decisions impacting a conclusion of value can be different from assignment to assignment—while still maintaining objective, professional integrity.

Valuation and appraisal development is based on building cumulative knowledge and the development of Professional Standards that promote a high level of consistency among many disparate assignments and authors. As more and more valuation and appraisal work conforms to development standards and as more and more knowledge is disseminated to a wider audience, the use of Professional Standards creates wider public approval and acceptance and confidence in your services as a CVA and member of the NACVA.


  • Association News
    • Past Issues
    • CEO's Message: Year-End Already—Can You Believe It?—Fourth Quarter 2023
    • A Tribute to John Marcus—Fourth Quarter 2023
    • Chief Operations Officer’s Report: Essentials—Fourth Quarter 2023
    • State Chapter News: National State Chapter Days and New Presidents—Fourth Quarter 2023
    • Ethics Oversight Board: Embedding Ethics into ESG—Fourth Quarter 2023
    • Job Opportunities Board—Fourth Quarter 2023
    • Outstanding Members—Fourth Quarter 2023
    • Newly Credentialed Members—Fourth Quarter 2023
  • The Value Examiner
  • Journal of Forensic and Investigative Accounting
  • QuickRead
  • Around the Valuation World®
  • Around the Valuation World® International
  • European Business Valuation Magazine (EBVM)
  • Call for Authors

2023 BVFLS Conference

Join Our E-mail List

NCCA | ANAB Accreditation

NACVA’s Certified Valuation Analyst® (CVA®) and Master Analyst in Financial Forensics® (MAFF®) designations are the only valuation and financial forensic credentials accredited by the National Commission for Certifying Agencies® (NCCA®), the accreditation body of the Institute for Credentialing Excellence™ (ICE™). The CVA designation is also accredited by the ANSI National Accreditation Board® (ANAB®).

Learn More

Contact Us

1218 East 7800 South, Suite 301
Sandy, UT 84094
NACVA1@NACVA.com
Toll-Free: (800) 677-2009

Submit Feedback

Connect With US

 

Register as a Guest

Copyright © 2023, National Association of Certified Valuators and Analysts ®
Naylor Association Management Software