A Conversation with the AICPA’s First CEIV Credential Holder, Gary Roland of Duff & Phelps

Recently, Gary Roland, CPA, CFA, became the first recipient of the American Institute of CPA’s (AICPA) new Certified in Entity and Intangible Valuations (CEIV) credential. Gary, a managing director at Duff & Phelps and a member of the AICPA’s Business Combinations Task Force, has been a valuation professional for more than 25 years.

In his role at Duff & Phelps, Gary works with colleagues to provide technical interpretation and guidance on financial reporting valuation matters. He has extensive multinational experience in the valuation of intangible assets and minority and controlling interests in closely held companies.

During an interview, Gary discussed the development of the CEIV credential, the impact the new Mandatory Performance Framework will have on fair value measurements, and how his firm, their clients and the profession could benefit from a consistent approach to substantiating valuations.

What are your thoughts on the development of the AICPA’s CEIV credential?
Given the current environment and various comments made by regulators in public forums, I thought the development of the CEIV credential was a very measured and rational response. The credential provides a framework for the consistent and recurring application of valuation expertise. It was a great collaborative effort among the valuation professional organizations and we now have a benchmark that can be applied across firms and to various stakeholders.

What was it like preparing for the CEIV credential exam?
I found the training courses to be an excellent review for me. You can always benefit by taking a step back, dusting off and reviewing what you think you may have already known. Particularly, the Mandatory Performance Framework education was very beneficial. There are currently many views as to how much work should be performed during a valuation, the framework will bring a unified approach. It won’t be cookie-cutter, but it will be consistent.

How will your clients benefit from the new Mandatory Performance Framework?
The framework will help our clients understand the valuation process, and help them think about the how and why of projections. Clients will benefit by understanding the common thread that now needs to be followed, which will lead to more consistent, higher quality and better documented financial reporting valuation engagements. In addition, clients can rest easy knowing that regulators have praised this effort by the valuation profession.

How will the CEIV credential potentially impact the profession?
The valuation community will be served by full-time valuation specialists rather than professionals that perform these valuations for financial reporting on a part-time basis. Overall, the profession will benefit from this and in conjunction with the new framework in which we will operate.

Is there anything that the CEIV credential will address that wasn’t previously in performing valuations?
The thing that jumps out at me the most is the increased focus on prospective financial information and the added depth of analysis and assessment of projections. The CEIV credential puts greater emphasis on professional skepticism and will, generally, benefit valuations. I think the level of diligence existed before, but with more emphasis, there will be a more systematic framework applied.

How does the AICPA backing the CEIV credential play into the integrity of the credential?
The AICPA has an outstanding reputation in the accounting profession, and with its development of accounting and valuation guides, the AICPA is a significant force in the area of valuations for financial reporting purposes. The AICPA’s role in the development of the CEIV credential was a perfect alignment.

Would you recommend the CEIV credential to colleagues?
At Duff & Phelps we are extremely supportive of the credential – we have been from the onset and will continue to fully embrace it. Our senior staff are all moving down the path to obtaining the CEIV credential. I believe the CEIV credential is important for any valuation professional practicing in the financial reporting arena.