The Fair Value Quality Initiative

Our latest post from Ipreo Private Capital Markets concerns a long-standing issue within the industry: inconsistent levels of analysis and documentation when conducting fair value measurements.

New guidance was published earlier this year, and today, Associate Zander Koallick aims to demystify these newly published standards.

With the goal of improving the quality of fair value measurements, industry groups including the AICPA and others have introduced two new frameworks with which to resolve these issues:

  • The Mandatory Performance Framework (MPF): a set of best practices and process guidelines concerning the fair valuing of corporate entities and intangible assets for financial reporting purposes; and
  • The Certificate in Entity and Intangible Valuation (CEIV): a certification to be earned by valuation professionals who wholly understand and embrace these standards in their work product.

In Ipreo PCM’s new report, The Fair Value Quality Initiative, Zander explains exactly what the MPF and CEIV are, how they work, and what they do.

Excerpt:

“The main goal of these efforts is to improve the overall quality and integrity of valuations, leading to greater investor confidence, and further increasing investors’ asset allocation into the private capital market space.”

Read the entire report: The Fair Value Quality Initiative