Preparing Fair Value Measurements for financial reporting has become an increasingly large part of the activities of business valuation specialists. In a recent survey of the business valuation profession by the Appraisal Foundation, over 60% of respondents indicated that they participate in this sub-specialty. The survey results also indicated that this was the largest of the business valuation sub-specialties among respondents. Given the rigor surrounding financial statement preparation, auditing of financial statements, and the activities of Federal regulators, business valuation specialists are well advised to create and maintain an equally rigorous process and culture surrounding their preparation of Fair Value Measurements for financial reporting. Anthony Aaron will outline some of the critical features that would be characteristic of a culture and process that supports a high degree of quality. Join the discussion of the current efforts by the profession around quality, and the plans for a new accreditation for those who perform Fair Value Measurements.

• Introduction
• The Appraisal Foundation Survey:
  
• Mandatory Performance Framework and the Fair Value Quality Initiative:
  
• Creating and maintaining a program to ensure quality:
  
  • Develop a “Quality Charter”
    
  • Hire competent and ethical professionals
    
  • Training
    
  • Encourage professional accreditation
    
  • Follow existing professional standards and guidance
    
  • Create a consistent process for Engagement Acceptance
  • Development of a standardized work product
    
  • Development of standardized work papers
    
    • Source documents
    • Analysis documents
      • Spreadsheet analysis or other calculation exhibits
        
      • Narrative explanations
  • Internal Quality Reviews
    
  • Ongoing Quality Process Review
    
  • Other activities to promote quality and consistency
    
• The FVQI and the CEIV accreditation
  
  • Credentialing
    
  • Performance Requirements
    
  • Quality Review/Regulation
    
• Summary

• Build awareness of the importance of fair value measurements for financial reporting
• Develop a process and culture to promote quality and consistency in performing fair value measurements for financial reporting
• Understand current efforts by the valuation profession to promote quality and consistency in fair value measurements for financial reporting