Over half (55%) of CPAs at companies with complex financial instruments on their books say they are concerned about the valuation of derivatives, according to the AICPA’s “Economic Outlook Survey” for the second quarter of 2019. Financial instruments such as mortgage-backed securities, interest rate swaps, or other derivatives are becoming increasingly complex, and they are taking up a larger percentage of balance sheets. About 70% of CPAs polled expect financial instruments to become more complex over the next one to three years, compared with 1% who expect them to decrease in complexity. Over half (53%) believe there is not enough market awareness of complex financial instruments to prevent a financial crisis, compared with only 22% who believe there is adequate awareness. Also, 56% say it would be easier to determine the value of complex financial instruments if they were measured and reported consistently and transparently. The AICPA recently launched the Certified in the Valuation of Financial Instruments (CVFI) credential and published a Financial Instruments Performance Framework document.