The AICPA, along with other valuation professional organizations, the ASA and Royal Institution of Chartered Surveyors (RICS), plus The Appraisal Foundation, are banding together to provide common education, credentialing, and governance in valuations for financial reporting, according to Mark Zyla (Acuitas), a leading expert in this area and the author of the book Fair Value Measurement: Practical Guidance and Implementation, available from BVR.

First step: The AICPA has authorized the development of two new specialty credentials in the area of fair value measurement, according to an announcement. The credentials are expected to launch in 2016 and will cover the areas of fair value measurement for: (1) business and intangible assets; and (2) financial instruments. They will be available to CPAs and other qualified professionals who meet eligibility requirements determined by the AICPA. “The approval of the two fair value measurement credentials by the governing council of the AICPA is a significant first step in enhancing the valuation profession in the area of fair value,” Zyla tells BVWire. “The other VPOs are likely to follow soon with approvals to develop very similar credentials.”

According to the AICPA, all fair value measurement credential holders will be required to demonstrate competency, adhere to mandatory performance framework, and comply with ongoing fair value measurement engagement quality review. In addition, fair value measurement credential holders will be required to meet CPE requirements and adhere to the AICPA code of conduct.

“The development of a fair value credential, even while in the early stages, allows the profession to further increase its stature in the public trust,” says Zyla.