The July 4th holiday is over, but the fireworks continue in the controversy surrounding the ABV credential. One of the issues raised in the Open Letter that criticizes the AICPA’s decision to open up the ABV credential to non-CPAs is the lack of transparency in the process (see prior coverage). The letter says members did not have sufficient chance to give their input prior to the AICPA Council’s vote on May 22 to approve the change. BVWire has learned that at least one attempt to inform members prior to the vote was stopped in its tracks. In a presentation given to the Council just prior to its vote, the impression was that the change had support all the way down the line.
AICPA kibosh: A member of a state CPA society tells BVWire that, in April 2018, it was planning to inform its membership of the proposed change in a society newsletter, but the AICPA stopped it from doing so. In emails with the AICPA, this member, who was then serving on a BV committee at the AICPA, said that it was wrong to keep members in the dark about the matter prior to the Council meeting and vote. After being prevented from communicating to society members, the member promptly resigned from the committee in protest. In response to a request for comment on this incident, the AICPA says it believes the email exchange has been “misconstrued and taken out of context.”
During the May 22 meeting, a Council member was “stunned” to see the item on the agenda, knowing that the full ABV membership had not been consulted about the change. This Council member tells BVWire that a presentation was given that explained the reasons for the change and that the proposal had widespread support. A motion to approve the change was then made and seconded. The Council was asked to give comments or make any objections. Council members made no comments and had no objections, so it was declared that the motion to approve the change was “unanimously passed.”
There has been some question about what actually went on during the Council meeting. The AICPA tells BVWire that these meetings are open to the public and that a video of the presentation and the motion to approve the ABV change is available if you click here.
Asked to comment about all of the uproar in the wake of this decision, the AICPA states: “This decision was brought to council after a multi-year, multi-committee process that included members and ABV holders from a variety of firm sizes, experience levels and valuation practice areas. It was done in accordance with due process and consideration and approval by the AICPA Board of Directors.” Its statement describes the decision process, which was also covered in the video. “This has been an open and transparent process,” the AICPA asserts. CPA/ABV leaders seriously disagree with that, and they will continue to make their voices heard.
Who’s next? The AICPA has been exploring opening up other credentials for specialty services (CFF, CITP, and PFS) to non-CPAs (“other qualified professionals,” or OQPs). Which one will be next? Will there be another outcry from credential holders if a change is made?
Extra: The AICPA will hold a free one-hour webinar on July 16 at 11:00 a.m. ET titled The Changing Landscape of Business Valuation. Click here to register.