The American Society of Appraisers (ASA), the American Institute of CPAs (AICPA) and the Royal Institution of Chartered Surveyors (RICS) finalized the Quality Monitoring (QM) Program for the Certified in Entity and Intangible Valuations (CEIV) credential, the organizations announced in a press release.
The QM Program ensures credential holders are complying with the CEIV’s Mandatory Performance Framework and the Application of the Mandatory Performance Framework (collectively the ‘MPF’), as well as educational, professional and ethical requirements, the release stated.
Beginning Jan. 1, all credential holders must comply with the QM program by completing an annual compliance assessment and maintaining credential requirements. While credential maintenance requirements, such as continuing experience and education, have been in place since the CEIV credential was released in 2017, the new annual compliance assessment rounds out the QM program.
“The assessment requires firms to report their policies and procedures to demonstrate how they are complying with the MPF. It is designed to provide ASA, AICPA and RICS the ability to identify areas where credential holders may need assistance to improve their compliance efforts,” the organizations stated. “It is not intended to challenge valuation conclusions.”
The CEIV credential was designed to enhance consistency and transparency in the fair value measurement process and is issued to valuation professionals who perform fair value measurements for businesses, business interests, intangible assets, certain liabilities, and inventory for financial reporting purposes.
Credential holders will submit their first annual compliance assessment in 2021. For more information on the new QM Program or the CEIV credential, go to www.ceiv-credential.org.