COMPLIANCE: Marshall & Stevens provides valuation opinions in compliance with USPAP and, as applicable:
USPAP – In 1986, nine leading professional appraisal organizations in the United States and Canada formed an Ad Hoc Committee on the Uniform Standards of Professional Appraisal Practice (USPAP) in response to the crisis in the savings and loan industry. In 1987, the Committee established the Appraisal Foundation to implement USPAP as the generally accepted set of appraisal standards in the United States.
The Appraisal Foundation is the nation’s foremost authority on the valuation profession. The organization sets the Congressionally authorized standards and qualifications for real estate appraisers as well as qualifications for personal property appraisers and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals. This work advances the profession by ensuring that appraisals are independent, consistent, and objective.
FASB – Established in 1973, the Financial Accounting Standards Board (FASB) is the independent, private-sector, not-for-profit organization that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP).
The FASB is recognized by the Securities and Exchange Commission (SEC) as the designated accounting standard setter for public companies. FASB standards are recognized as authoritative by many other organizations, including state Boards of Accountancy and the American Institute of CPAs (AICPA). The FASB develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports.
The Financial Accounting Foundation (FAF) supports and oversees the FASB. Established in 1972, the FAF is the independent, private-sector, not-for-profit organization responsible for the oversight, administration, financing, and appointment of the FASB and the Governmental Accounting Standards Board (GASB).
FIRREA – In 1989, the U.S. Congress enacted the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), which authorized the Appraisal Foundation as the source of appraisal standards and qualifications. The Foundation is not a membership organization but rather is composed of other organizations. Today, with Sponsoring Organizations and Advisory Councils, close to one hundred organizations, corporations and government agencies are affiliated with the Foundation.
Healthcare Regulatory Requirements – The healthcare industry is a highly regulated industry, and as such, it is imperative for healthcare providers to make sure that their organizations pass government scrutiny or face severe consequences. At the Federal Level, healthcare organizations need to be in compliance with the Stark Law and Anti-Kickback Statute. In addition, each state has its own laws that require compliance. Within these bodies of law, the government stipulates that contracted compensation in a professional service arrangement between referring parties be set at Fair Market Value and that they are Commercially Reasonable.
IFRS – The IFRS® Foundation is a not-for-profit international organization responsible for developing a single set of high-quality global accounting standards, known as IFRS Standards.
The mission of the IFRS Foundation is to develop standards that bring transparency, accountability and efficiency to financial markets around the world. Its work serves the public interest by fostering trust, growth and long-term financial stability in the global economy.
IPEV – The International Private Equity and Venture Capital Valuation (IPEV) Guidelines set out recommendations, intended to represent current best practice, on the valuation of Private Capital Investments. The objectives of these Valuations Guidelines is to set out best practice where Private Capital Investments are reported at ‘Fair Value’ and hence to help investors in Private Capital Funds make better economic decisions.
IRS – The Internal Revenue Service provides guidance and expectations for valuations performed for federal tax reporting purposes. Marshall & Stevens complies with its understanding of applicable IRS valuation guidance for specific tax reporting assignments.
MPF – Marshall & Stevens has adopted the Mandatory Performance Framework (“MPF”) prescribed under the Certified in Entity and Intangible Valuations (“CEIV”) credential for all financial reporting assignments.
MPF serves as a guide that defines the necessary work to provide supportable and auditable fair value measurements for financial reporting purposes. MPF also helps to ensure the consistency and transparency of those reports.
PROFESSIONAL VALUATION DESIGNATIONS:
ASA – The American Society of Appraisers is a world renowned and respected international organization devoted to the appraisal profession. ASA is the oldest and only major appraisal organization designating members in all appraisal specialties.
CEIV – The Certified in Entity and Intangible Valuations is intended for professionals who perform fair value measurements for public company financial statement reporting purposes. This includes estimating the fair values of businesses and/or business interests for goodwill impairment testing and stock compensation purposes, and intangible assets for purchase price allocation and impairment testing purposes. The credential is offered to members and prospective members of ASA, AICPA, and RICS who work in the fair value arena.
CFA – CFA Institute is a global association of investment professionals. The organization offers the Chartered Financial Analyst designation (“CFA”), the Certificate in Investment Performance Measurement designation, and the Investment Foundations Certificate
MAI – The Appraisal Institute, a global professional association of real estate appraisers, with nearly 18,000 professionals in almost 50 countries throughout the world. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS, and AI-RRS designations.
MRICS – The Royal Institution of Chartered Surveyors is a professional body promoting and enforcing the highest international standards in the valuation, management and development of land, real estate, construction and infrastructure. Those with the designation MRICS are also known as chartered surveyors.