“CPAs and financial professionals can start working now on the training requirements for the CEIV credential,” Nathan DiNatale (SC&H Group), chair of the AICPA Business Valuation Committee, tells BVWire. The mandatory performance framework (MPF) has now been finalized, clearing the way for the new credential’s launch.

Joint effort: The new valuation credential is related to fair value for financial reporting, and it has been developed under a joint effort of the AICPA, ASA, and RICS. These groups want to bring more consistency to the profession and reduce the number of questions auditors raise about the valuations. The new credential is Certified in Entity and Intangible Valuations™ (CEIV™), and it focuses on business entities and intangible assets. Credential holders will be required to comply with the MPF, which is designed to make sure that the valuation expert adequately documents his or her work and thought processes. This will help make auditors more comfortable with valuation estimates, especially for intangibles.

“Since 2005, the SEC has been speaking out as to the fragmentation of the valuation profession and that the profession would benefit from unified qualifications, standards and oversight,” says Nancy Czaplinski (Duff & Phelps). “The CEIV credential will unify valuation professionals with a common framework, standards and body of knowledge.” Mark Zyla (Acuitas Inc.) adds: “It will ensure a transparent process that provides consistently accurate results that can be relied upon with confidence by clients, companies, regulators and the public.”

More details: DiNatale answers questions about the new credential in an exclusive interview that will appear in the February issue of Business Valuation Update. Also, a special website has been set up at ceiv-credential.org that has more details on the credential and its requirements.