The American Institute of CPAs’ governing council approved a resolution authorizing the development of two new credentials for fair value measurement at the AICPA’s Spring Meeting of Council in Washington, D.C., on Monday.
The two new credentials will cover the areas of fair value measurement for business and intangible assets, along with fair value measurement for financial instruments. They will be available to CPAs and other qualified professionals who meet eligibility requirements determined by the AICPA’s National Accreditation Committee and approved by the AICPA’s Board of Directors.
The credential for fair value measurement of business and intangible assets is scheduled to launch in April 2016 and the credential for fair value measurement of financial instruments in October 2016.
The two new credentials have not yet been given names, but will operate along with the AICPA’s existing ABV credential for CPAs who are Accredited in Business Valuation. The AICPA plans to differentiate the two new credentials from the ABV credential for fair value measurement.
Some AICPA members have raised concerns at previous meetings that the new fair value measurement credential might dilute the CPA brand, since it is also open to non-CPAs, but officials said they would work to make sure that did not happen. The AICPA expects to have 5,000 people with the new fair value measurement credential by 2020.
“The AICPA is committed to meeting the market demand and public need for improved consistency and transparency in the fair value measurement process,” said AICPA National Accreditation Committee chair Michael Ueltzen in a statement. “By establishing rigorous qualification requirements, performance standards, and a mandatory performance framework, these credentials are being developed to address regulators’ concerns and improve the quality of fair value measurements.”
All fair value measurement credential holders will be required to demonstrate competency, adhere to mandatory performance framework and comply with ongoing fair value measurement engagement quality review. In addition, fair value measurement credential holders will be required to meet CPE requirements and adhere to the AICPA code of conduct.
“The development of these fair value measurement credentials will respond to regulatory concerns, meet the marketplace need and promote increased quality in the valuation profession as a whole,” said AICPA senior vice president and chief operating officer Anthony J. Pugliese.
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