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The AICPA’s Eddy Parker Explains the Responsibilities and Specialized Knowledge of the Accredited in Business Valuation (ABV) Credential Holder

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Written by bprescottFebruary 1, 2012
ABV

The American Institute of Certified Public Accountants (AICPA) is the regulatory and certification board for the Accredited in Business Valuation (ABV) credential and provides access to specialized information, education, tools and support for prospective and current ABV credential holders. The Institute supports those with an Accredited in Business Valuation credential to enhance the quality of valuation services CPAs provide, promote and protect member interests with regulators and other third parties, and achieve public recognition for the ABV as the preferred valuation professional. Those who have earned the ABV credential have achieved yet another level of distinction, building on the rigorous education, experience and knowledge exemplified by the CPA. ABV credential holders further differentiate themselves as professionals because they are able to go beyond providing the core service of concluding a businesses’ value to creating value for clients through the strategic application of this analysis. 

The ABV credential is exclusively granted by the AICPA to qualified CPAs. To quality, a new ABV applicant must hold a valid and unrevoked CPA license or certificate issued by a legally constituted state authority, pass the ABV exam and attest to meeting the minimum business experience and education requirements.

Eddy Parker, CPA and Technical Manager, Forensic and Valuation Services, AICPA, recently spoke with AccountingCareersForDummies.com to discuss the responsibilities and specialized knowledge of the ABV certification holder. Mr. Parker also explains how client demand has made business valuation services the fastest growing niche area for CPAs and is based in North Carolina. Below is part one of a four-part interview series with the AICPA.

ACFD: When and why was the Accredited in Business Valuation (ABV) credential established?

EP: The first ABV exam was held in 1997, with the first certificates issued in 1998. The credential was established to meet the growing needs of CPAs who were providing valuation services to their clients. As the fastest growing niche area for CPAs, they wanted to distinguish themselves and showcase their expertise to clients and potential clients. Proof of specialized knowledge often takes the form of additional credentials, as seen in other professions, such as medical and dental.

ACFD: What special knowledge does someone have who has earned this credential?

EP: CPAs who have earned the ABV credential understand and are able to apply valuation approaches and methods in accordance with accepted standards. They also apply their professional judgment to apply discounts and premiums to arrive at their conclusion of value.

ACFD: How do those who have earned the ABV credential contribute value in the workplace?

EP: The ABV credential can be earned only by CPAs – a profession that has an established reputation for integrity, objectivity and competence. The powerful combination of these two premier credentials enhances the practitioner’s image as a knowledgeable, credible valuation expert and expands opportunities for referrals from other practitioners, strategic partners, attorneys and clients. CPAs with the ABV credential are uniquely qualified to provide additional value-added analysis on top of the core valuation, such as advising clients on how to improve their balance sheet and operating ratios, which results in increasing the value of the business. 

To maintain the credential, ABVs must obtain at least 60 hours of specialized training every three years. This demonstrates a commitment to continuous learning, increasing their valuation skills, expertise and professional competency.  There are approximately 3,000 ABV credential holders in the U.S.

ACFD: Thank you so much for talking with us today!