Regulatory concerns over fair value measurements for financial reporting have spurred the valuation profession to come together in an ongoing initiative to improve the quality of financial reporting valuations for U.S. publicly traded companies. Senior representatives from the ASA, AICPA, and RICS have released a new report outlining the progress of the initiative.

New credential: The initiative includes the development and implementation of a credential to be issued by approved valuation professional organizations (VPOs) for individuals performing fair value measurements for financial reporting purposes for SEC-registered U.S. public companies. The first group to be considered for credentialing will be third-party valuation preparers who perform fair value measurements for businesses and intangible assets. Individuals must attain the credential through one of the approved VPOs and adhere to the ethical and membership requirements of that VPO. There are other requirements for attaining the credential, including experience and education.

Extra: An update on the fair value initiative is on the agenda of the 11th Annual Fair Value Conference in Los Angeles on June 8. Conference speakers include individuals from the SEC, PCAOB, FASB, AICPA, and leading valuation firms.