So, you or your client just entered into a transaction that requires fair value measurement, such as a business combination or a convertible financing. How do you determine how much “fair value” is? This is a complex area and companies often don’t have the in-house expertise to perform the necessary fair value measurements. Therefore, it is very important to choose the right valuation professional to help but all valuation professionals are not created equal, especially when it comes to determining fair value for financial reporting.
Soon it may be easier to narrow down the field of candidates to help you know who is qualified to assist you with your valuation needs. In May 2015, the AICPA voted to authorize the development of two new specialty credentials related to fair value measurement. The first credential is related to fair value measurement for business combinations and intangible assets and the second is fair value measurement for financial instruments. The AICPA plans to have demanding qualification requirements and performance standards in order to obtain the credentials. In addition, the holders of the credential will need to demonstrate competency, meet continuing education requirements and undergo engagement quality review of their work.
The AICPA expects to launch these new credentials in 2016 and they will only be available to CPA’s and other qualified professionals who meet the eligibility requirements determined by the AICPA.
Blue Abaco Consulting is committed to maintaining the highest standards and providing our clients with a reliable, quality work product. For that reason, once the new credentialing process is in place, we plan on undergoing the scrutiny and testing necessary to qualify for the new credentials.
We’ll provide more information about the new credentials as it is released from the AICPA.