In response to concerns expressed by the SEC and others, the American Institute of Certified Public Accountants (AICPA), American Society of Appraisers (ASA), and Royal Institution of Chartered Surveyors (RICS) and others are developing a framework to address issues facing the valuation profession. The intent of these efforts is to enhance consistency and transparency in the fair value measurement process for entities and intangible assets for U.S. public company financial reporting purposes. More insights into this initiative can be found in Ray Rath’s Enhancing the Quality of Valuations for Financial Reporting.
Additional information can be found in Assessment of the Current Professional Infrastructure Governing Fair Value Quality Progress Report. Information on the Mandatory Performance Framework Exposure Drafts can be found in the Mandatory Performance Framework and the related Application of the Mandatory Performance Framework.