New CEIV Accounting Credential Recognizes Fair Value Measurement

The exam for the Certified in Entity and Intangible Valuations (CEIV) credential for fair value measurement is now available. It offers the opportunity for finance professionals to receive this credential from the American Institute of CPAs (AICPA), the American Society of Appraisers (ASA), or RICS (Royal Institution of Chartered Surveyors).

“The CEIV credential is an important step in improving the confidence that clients, regulators, auditors, investors, and the public have in the quality of fair value measurement results that are included in financial statements,” said Jeannette Koger, CPA, CGMA, vice president, advisory services and credentialing, public accounting, for the Association of International Certified Professional Accountants. “We believe this confidence will be heightened when the preparers and users of financial statements know that fair value measurement was performed by someone holding the CEIV credential.”

To obtain the CEIV credential, finance professionals must have a minimum of 3,000 hours of experience in fair value measurement. They also must pass the credential exam to demonstrate a working knowledge of fair value measurement, business valuation, accounting and auditing standards, and the uniform guidance to be followed as a credential holder.

Finance professionals who obtain the CEIV credential will be required to follow uniform guidance on how much documentation is necessary to support their fair value measurement results in determining values of businesses and intangible assets for company financial statements. Intangible assets include trademarks, patents and technology, customer sales lists, and non-compete agreements. The CEIV credential also requires quality reviews of credential holders to ensure they are following the guidance properly.

Auditors, regulators and other users of financial statements had sometimes found it difficult to see how certain values were determined using fair value measurement. The uniform guidance was developed to make it easier to understand how fair value measurement was used to develop these values. The CEIV credential’s rigorous eligibility requirements were determined by the AICPA, ASA and RICS in collaboration with other organizations that contributed to its development, including The Appraisal Foundation and the International Valuation Standards Council. Finance professionals who obtain the CEIV credential have demonstrated that they have the necessary training, qualifications, experience, and expertise to perform this fair value measurement work successfully using the uniform guidance.

“The CEIV credential is a groundbreaking accomplishment for the valuation profession. Having a robust and uniform set of standards and requirements will greatly enhance transparency and confidence in the work being performed by CEIV credential holders.” said William A. Johnston, ASA, ASA Business Valuation Committee chair and managing director, Empire Valuation Consultants.

The online credential exam is divided into two parts, with each part containing 60 multiple-choice questions that will take two hours to complete.

“Passing the credential exam does more than demonstrate a practitioner’s aptitude for fair value measurement, business valuation, and accounting and auditing standards,” said Steve Choi, global director of business valuation at RICS. “The exam represents a thorough understanding of the new uniform guidance, which defines the level of documentation and performance that is necessary to provide supportable and auditable fair value measurements. This is critical as credential holders must submit to ongoing quality reviews to demonstrate that they are in accordance with the guidance.”

Finance professionals who pass the exam and meet the remaining requirements can apply online to receive the CEIV credential from either AICPA, ASA or RICS. Learn more at https://ceiv-credential.org/.