CPPA and Auctioneers. CPPA stands for Canadian Personal Property Appraiser. This group was formed by a group of mostly AUCTIONEERS back in 1995 so that they could have a formal and documented format to use that followed the Uniform Standards of Professional Appraisal Practices that could be accepted in court. Experience was the key factor. …
Example of what relevant business experience means?A good example is a person who acted as a painting contractor painting houses in the summer while working their way through college; followed by a 3 year partnership with a college friend in an internet-based dog walking service that was not going anywhere and was sold for small …
The Income Tax Act which is the legislation governing business valuations in Canada Policy Statement is specific in that it does not give special status. “The valuator must use reasonable judgment and objectivity” (which suggests experience). “Fair market value” and “giving more weight to certain relevant factors” are recurring themes one finds in the Canadian Income Tax Act Policy Paper. …
Step 1. Analyze the Balance Sheet: For example, it may be that a well-capitalized company has $600,000 retained as required capital in the balance sheet. In this hypothetical case, we would calculate a capital charge of perhaps 6%. or $36,000 against the income of the company. Subject to other factors. Step 2. Normalize the Financial Statements: Meaning …
Implementation steps required by my proprietary and copyrighted system. Read More »
For those of you who are working with clients who need business valuations for CRA, Divorce, or other purposes you may or may not know that the only legislation in Canada on Business Valuation comes from the The Income Tax Act and the Canada Revenue Policy Paper on Business Equity Valuations. They refer to different …
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