BVWire sat through the AICPA’s three-day prep class for the new Certified in Entity and Intangibles (CEIV) credential for professionals involved in fair value for financial reporting. The credential is offered by three valuation professional organizations (VPOs): the AICPA, ASA, and RICS. A few weeks ago, the ASA also had a class and recently announced the availability of an online version of the training. The AICPA also has online training and so does RICS.
Two parts: The prep class consists of two parts: (1) a basic body of knowledge on general accounting and valuation issues related to fair value for financial reporting; and (2) education related to the mandatory performance framework (MPF). The MPF is a set of best practices designed to make sure that the valuation expert adequately documents his or her work and thought processes. Everyone—regardless of experience—must take this two-part education.
Attendees at the class wondered why individuals with a great deal of fair value experience would have to go through the basic education section of the training. The VPOs want to make sure that everyone is on the same high level in terms of the education and training for this new credential and that everybody is up-to-date on current developments. The goal is to raise the bar to satisfy concerns of regulators over the quality of fair value work and avoid government intervention.
After you take the two-part prep class, you can take the exam, which is also in two parts and has a total of 120 questions: 60 questions on the body of knowledge and 60 questions on the MPF. The exam is a timed online exam, which is in the final stages of approval and will be available shortly. The exam is the same for all VPOs.
‘CEIV candidate’: Once you meet the baseline requirements so you can apply for the credential, you will need to show 3,000 hours of fair value experience during the five years prior to getting the credential. Attendees asked whether they could take the exam before they have the full 3,000 hours of experience. Yes, according to AICPA officials who attended the class. Of course, you wouldn’t get the credential until you hit the 3,000 hours, but if you pass the exam you can hold yourself out as a “CEIV candidate” in the meantime, they say.
For more information on the credential and the various pathways and requirements to qualify, there’s a special CEIV website that’s been set up. There, you will find the finalized version of the MPF, which you need to study.
The AICPA prep class was conducted in New York City March 22-24 by Mark Zyla (Acuitas) and Mark O. Smith (AICPA), who was a technical author on the MPF. Zyla is the author of Fair Value Measurement: Practical Guidance and Implementation.
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