The Mandatory Performance Framework and Quality

Transcript:The Mandatory Performance Framework and Quality:
The Mandatory Performance Framework and Quality Reviews Anthony V. Aaron, CFA, ASA, FRICS Adjunct Professor University of Southern California Presentation to the VII International Business Valuation Conference Organismo Italiano di Valutazione November 12, 2018 This presentation contains numerous quotations from documents entitled “Mandatory Performance Framework” and ”Application of the Mandatory Performance Framework”. These documents are copyrighted works of the Corporate and Intangibles Valuation Organization, LLC. In addition, reference is made to the Certified in Entity and Intangible Valuation credential, which is a trademark of the Corporate and Intangibles Valuation Organization, LLC. Parts of this presentation have been adapted from class materials created by Professor Anthony V. Aaron and utilized in a graduate class, ACCT 558, “Advanced Accounting Valuation” at the University of Southern California. Today’s Topics The Fair Value Quality Initiative (“FVQI”) The Certified in Entity and Intangible Valuations credential (“CEIV”) The Mandatory Performance Framework (“MPF”) and the Application of the Mandatory Performance Framework (“AMPF”) Quality Reviews for CEIV credential holders The Fair Value Quality Initiative (“FVQI”) The Fair Value Quality Initiative The Fair Value Quality Initiative (“FVQI” ): What is it? “Within the past several years, public statements by U.S. capital market regulators have called into question whether some of the individuals that assist SEC registrants with estimating fair value for financial reporting purposes have the requisite training, qualifications, experience, and expertise to perform this type of work. The SEC staff has expressed a desire that the various stakeholders in the valuation profession coordinate their efforts to establish rigorous and uniform qualifications, training, accreditation, and oversight of individuals conducting fair value measurements.” The Fair Value Quality Initiative The Fair Value Quality Initiative (“FVQI”): What is it? “In response to these regulatory concerns and the public perceptions, numerous groups including not-for-profit valuation professional organizations (VPOs), non-membership VPOs, and others collaborated to form a task force (Ultimately, the FVQI) that focused on the issues facing the valuation profession and how best to address them.” (emphasis added) A legal entity, the “Corporate and Intangibles Valuation Organization, LLC” (“CIVO”) was created to house the intellectual property created by the initiative and carry out joint activities of the joint efforts of the three founding Valuation Professional Organizations (“VPO’s”). The Certified in Entity and Intangible Valuations Credential (“CEIV“) Certified in Entity and Intangible Valuation Credential The Certified in Entity and Intangible Valuation credential (“CEIV”): What is it? The Certified in Entity and Intangible Valuations credential