The governing body of the American Institute of CPAs (AICPA) on May 18 approved a resolution that authorizes the creation of two new specialty credentials in the area of fair value measurement.

The governing Council of the AICPA, comprised of approximately 265 members and representatives from every state and US territory, passed the resolution during its 2015 spring meeting in Washington, DC.

The two new credentials will respectively cover the areas of fair value measurement for business and intangible assets, and fair value measurement for financial instruments. They will be available to CPAs and other qualified finance professionals who meet eligibility requirements determined by the AICPA National Accreditation Committee and approved by the AICPA Board of Directors.

The credentials are scheduled to launch in 2016, according to the AICPA.

“The AICPA is committed to meeting the market demand and public need for improved consistency and transparency in the fair value measurement process,” Michael Ueltzen, chair of the AICPA National Accreditation Committee, said in a written statement. “By establishing rigorous qualification requirements, performance standards, and a mandatory performance framework, these credentials are being developed to address regulators’ concerns and improve the quality of fair value measurements.”

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

“The development of these fair value measurement credentials will respond to regulatory concerns, meet the marketplace need, and promote increased quality in the valuation profession as a whole,” said Anthony Pugliese, CPA, CGMA, CITP, senior vice president and COO of the AICPA.

Source: Accounting Web – By Jason Bramwell