The news that the Certified in Entity and Intangible Valuations (CEIV) credential was being discontinued stunned some attendees at the ASA Fair Value Spring Conference in New York City on May 4. The CEIV credential was a joint effort of the AICPA, ASA, and RICS that began in 2014 and was launched in 2017.

Valuation practices, including the Big Four, embraced the program, and many practitioners went through the training, but some firms stopped short of requiring their people to be credentialed. During the credential’s development, there were concerns over such issues as quality control and client confidentiality, BVWire reported at the time.

MPF will endure: At the conference, speakers reported that the Mandatory Performance Framework (MPF) will continue to be used. In fact, a revision is in the works to make it more streamlined and some credentialing groups will incorporate it into certification training. The MPF was designed to make sure that the valuation expert adequately documents his or her work and thought processes. Better documentation helps make auditors more comfortable with valuation estimates, especially for intangibles, and it eases the concerns of the SEC and PCAOB.

At this point, the credentialing organizations are working through details of the sunsetting process, and more information will be forthcoming.