Status Update on the Accredited in Business Valuation
(ABV) Credential
W. James Lloyd,
CPA/ABV, CBA, McWilliams & Company, PLLC,
Knoxville, TN
Published in Tennessee CPA Journal 2004
Over the past several months, the National Accreditation Commission
(NAC), with assistance from volunteer members and AICPA staff,
has undertaken a comprehensive review of the three AICPA specialty
credentials, which are: Accredited in Business Valuation (ABV),
Personal Financial Specialist (PFS) and Certified Information Technology
Professional (CITP). A series of Town Hall teleconferences and
on-line surveys were utilized in order to gather feedback and determine
the overall level of support for each of the credentials.
On September 18, 2003, the NAC presented its recommendations,
which included retaining and improving the financial support for
all three credentials, to the AICPA Board of Directors. In turn,
the Board approved NAC's recommendations and presented them to
the AICPA governing Council at its fall meeting in New Orleans
on October 20 and 21, 2003. Fortunately for the approximately 1,500
current ABV credential holders and others seeking this designation,
Council approved the Board's recommendations.
Although the ABV credential is currently alive and well, the recommendations
include the following provisions that individuals interested in
this specialty area should be aware:
- Restructure and possibly rename the Consulting Services Membership
Section to a Business Valuation/Forensic and Litigation Services
Membership Section
- Create a new Business Valuation/Forensic and Litigation
Services Executive Committee
- Funding for the Business Valuation/Forensic and Litigation
Services discipline, of approximately $5.75 million in
excess of revenues through the fiscal year ending July
31, 2008, which is referred to as the ABV sunset review
time. The program is expected to be to the break-even
point and at least 2,700 members strong by the July 31,
2008 deadline
Notwithstanding the above, The AICPA Board of Directors is expected
to review the progress of the ABV program at the end of each year
during the sunset review period and determine whether it is on
track to achieve the above financial and membership goals. If the
Board determines that the program is not likely to achieve its
goals, then a new sunset strategy may be implemented prior to the
July 31, 2008 deadline. Therefore, a life raft has been thrown
to the program but it will have to be able to swim on its own in
order to survive long-term.
Requirements for Obtaining the ABV Credential
For those individuals interested in practicing in the business
valuation arena, the AICPA recently implemented a new Multiple
Entry Points System (MEPS) for awarding the ABV credential. The
MEPS has been approved by the National Accreditation Commission
and applies to all candidates for the ABV credential beginning
January 1, 2003. Under MEPS, candidates must hold a valid CPA certificate
and accumulate a total of 100 points in the following three areas:
- Experience (25 points) - successful candidates must be able
to demonstrate significant involvement in at least ten valuation
engagements or projects. In an effort to make the ABV credential
more accessible to individuals in industry, the term projects
was added to reflect the fact that written reports are generally
not produced by these valuators.
- Lifelong Learning (25 points) - to meet this requirement,
successful candidates must demonstrate attendance at
continuing education courses, approved coursework or
classroom training, conferences, etc. specifically in
the valuation discipline.
- Examination (50 points) - a candidate that is a new
entrant (not certified by any other business valuation
organization) must pass the full day (Parts I and II)
ABV examination. CPA's already holding the Accredited
Senior Appraiser (ASA) credential is deemed to have satisfied
the examination requirement. However, candidates holding
the Certified Valuation Analyst (CVA), Certified Business
Appraiser (CBA), or Chartered Financial Analyst (CFA)
credentials can satisfy the examination requirement by
passing the half-day (Part I) examination.
Two additional noteworthy changes are that the examinations are
now computer based and candidates have a two-week time period during
November to take them. For more detailed information regarding
the above requirements, the ABV Handbook may be downloaded from
the AICPA website by clicking
here. The next two-week exam period will be November 3-15,
2004.
Business valuation is one of the fastest growing practice areas
for accounting firms nationally. Many CPAs are a natural fit for
this specialty due to our analytical skills and prior training.
Individuals interested in pursuing this exciting and challenging
field is encouraged to seek out the proper training, such as through
the AICPA ABV program, and to demonstrate their competence by obtaining
the appropriate credential(s).
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