All participants in the CEIV certification program follow a Mandatory Performance Framework, which serves as a practical, non-authoritative guide that defines the necessary work to provide supportable and auditable fair value measurements for financial reporting purposes. The Framework also helps to ensure the consistency and transparency of those reports.
The Application of the Mandatory Performance Framework applies the Framework for selected areas of professional valuation practice that are often either misapplied or insufficiently supported, documented (or both) in valuations for financial reporting purposes. It also identifies the most common components of an engagement in which the valuation professional provides a conclusion of value of a business or business interest.
These sections govern the scope of work and extent of documentation for selected areas associated with the valuation of businesses, business interests, intangibles assets, certain liabilities, and inventory that are prepared for financial reporting purposes. Specifically, these sections address matters that need a greater consistency in the application of valuation approaches and methods, support for issues that require the application of professional judgment and documentation of inputs.