The Mandatory Performance Framework (MPF), which was issued in connection with the now-discontinued Certified in Entity and Intangible Valuations (CEIV) credential, will be revised to become the Valuation Performance Framework (VPF). A draft will be available for public exposure in 2025, according to Mark Smith (AICPA) and Austin Lee (BDO), who did a presentation at the recent AICPA & CIMA Forensics & Valuation Services Conference in Dallas.

The ASA, AICPA, and RICS co-developed the MPF as part of the CEIV credential, but the AICPA is doing the transition to the new VPF. The document defines the necessary work to provide supportable and auditable fair value measurements for financial reporting purposes. Better documentation helps make auditors more comfortable with valuation estimates, especially for intangibles, and it eases the concerns of the SEC and PCAOB. Big Four firms as well as the larger valuation firms adopted the MPF in their standards.

A question from the audience: Will valuation firms make the VPF mandatory? Probably, since the large firms are all at the table developing the VPF.

CVFI still around? There is also a Financial Instruments Performance Framework (FIPF), which was designed for the AICPA’s Certified in the Valuation of Financial Instruments (CVFI) credential. The FIPF is almost identical to the MPF and embodies the same principles. A question from the audience: Is the CVFI still active? Yes, the speakers said, and so is the FIPF.