The valuation profession has gone through many changes since the introduction of fair value measurements, and the development of a new credential will help unify the valuation profession. The Certified in Entity and Intangible Valuations" (CEIV") Credential is for professionals performing fair value measurements of entities and intangible assets for financial reporting purposes. The Credential is the result of the efforts of a Fair Value Infrastructure Quality Initiative and has been established through the joint efforts of the American Society of Appraisers (ASA), the American Institute of Certified Public Accountants (AICPA) and the Royal Institution of Chartered Surveyors (RICS).
Watch: Paul Barnes, Managing Director and Global Leader of Duff & Phelps' Valuation Advisory Services, discusses the pathway to the credential:
The Mandatory Performance Framework
Underlying the CEIV credential is a Mandatory Performance Framework (MPF) for valuations and Application guidance for the MPF (Application) which were created to provide a consistent framework for determining how much valuation work to do and how to document the work performed in estimating fair value. The MPF and Application are required to be applied by CEIV credential holders and considered a best practice for non-CEIV valuation professionals.
The Credential and MPF were developed in response to regulators that encouraged the valuation profession to collaborate and coordinate their efforts to establish unified qualifications, training, accreditation and oversight of individuals conducting fair value measurements for financial reporting. Compliance with the MPF will enhance consistency and transparency in the performance of fair value measurements for the benefit of the public interest, and will continue to ensure the quality of valuations for financial reporting.
Duff & Phelps managing directors were involved in the fair value quality initiative (FVQI) in the establishment of the MPF.
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