Known appropriately enough as the Fair Value Quality Initiative, the goal is to make the fair value measurement process more consistent and transparent. The credential will be given to third-party valuation specialists who do fair value measurements for entities and intangible assets for US public company financial reports.
“Key components of this new credentialing program will include ongoing quality oversight and compliance with a Mandatory Performance Framework that will help define ‘how much’ work is necessary to provide supportable and auditable fair value measurements,” the AICPA says.
Here’s what the organizations especially want to know from respondents:
Are the objectives of the documentation guidance clearly stated?
Are there any topics or subtopics that should be included that currently aren’t?
Would examples help to provide instruction for the application of the Mandatory Performance Framework?
Let them know if and why the proposal needs work by referring to specific paragraphs, and include suggestions for changes. If the proposal is fine as is, let them know.
Comments will be available for public inspection at the organizations’ offices for one year beginning July 11.
Terry Sheridan is an award-winning journalist who has covered real estate, mortgage finance, health care, insurance, personal finance, and accounting and taxation issues for newspapers, magazines, and websites. A Chicago native and former South Florida resident, she now lives in New England.