Members who perform valuation services are advised that the Accounting Professional & Ethical Standards Board (APESB) has issued a new professional standard on valuation engagements.

This new standard APES 225 Valuation services will operate for engagements commencing on or after 1 January 2009 with early adoption permitted.

APES 225 specifies the fundamental responsibilities of members, including professional independence, professional engagement and reporting requirements for valuation reports. APES 225 also specifically states that contingent fee arrangements will not be entered into for valuation services, which purport to be independent or require independence.

APES 110 Code of ethics for professional accountants states that contingent fees may be used for certain types of non-assurance engagements. However, where independence is asserted for a non-assurance service the applicable safeguard shall be similar to the safeguard applied for assurance services.

At the May APESB meeting, the board also decided to issue a revised standard on compilation of financial information for engagements commencing on or after 1 January 2009 with early adoption permitted.

APES 315 Compilation of financial information has been issued and applies to all members in public practice who undertake compilation engagements.

Members are advised that the scope of this revised standard is more extensive than its predecessor professional statement APS 9 Statement on compilation of financial reports because it covers all financial information compiled by members in public practice. APES 315 should also be applied to the extent practicable for engagements to compile non-financial information.

While APES 315 is written primarily for members in public practice, members in business should apply this standard, to an extent practicable, when compiling information for their employers.

For further information visit the APESB website.