First Uniform Credential in Entity and Intangible Valuation Available



Finance professionals who offer pricing or valuation services will now be able to take an exam for the first uniform credential in entity and intangible valuations (CEIV).

Unlike public accountants who sign audit reports and have the standardized CPA accreditation, valuation professionals can have a confusing array of different certifications from the American Society of Appraisers (ASA), Chartered Financial Analyst (CFA), Royal Institution of Chartered Surveyor (RICS), among others. The uniform guidance was developed to make it easier for auditors, regulators and other users to understand and have confidence in how valuation professionals are making their fair value measurement judgments.

Fair value is the price that two parties are willing to pay for an asset or liability preferably in an active market. Both management and auditors use valuation services or pricing services to assist with estimating fair value. Problems arise when there is no observable market price and management must estimate its fair value based on the best information available in the circumstances. 

The American Institute of CPAs, the ASA and the RICS have been working since 2013 to come up with one uniform  credential. 

The CEIV credential does not replace any of the other credentials in the marketplace for business valuations. The CEIV is in addition to those credentials, and is focused specifically on fair value measurement of businesses and intangible assets to provide valuations for use in financial statements. AICPA will still offer its Accredited in Business Valuations (ABV) credential. However, an ABV credential holder who does valuation work for company financial statements will want to obtain the CEIV to go along with his or her ABV status, Eva Simpson, Director,Valuations for AICPA told Bloomberg BNA May 4. 

The CEIV credential covers valuation of businesses and intangible assets, not derivative financial instruments. The   AICPA is in the process of developing a fair value measurement credential that will address financial instruments, Simpson said. 

Uniform Guidance Knowledge Required

Steve Choi, global director of business valuation at RICS, said that the exam requires practitioners to show a “thorough understanding of the uniform guidance which defines the level of documentation and performance that is necessary to provide supportable and auditable fair value measurements.” 

Finance professionals who obtain the CEIV credential must:  

  • have at  least 3,000 hours of experience in fair value measurement;

  • pass the credential exam to show knowledge of fair value measurement, business valuation;

  • show knowledge of accounting and auditing standards; and 

    know the uniform guidance on required documentation for determining the value of businesses and intangible assets. 


“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 Jeanette Koger, AICPA's vice president of member specialization and credentialing, on May 2.

More information on taking the exam is available at

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