Accredited in Business Valuation (ABV) is a prestigious professional designation granted to Certified Public Accountants (CPAs) who specialize in assessing the value of businesses. The ABV certification is governed by the American Institute of Certified Public Accountants (AICPA). Obtaining this certification necessitates a rigorous application process, including passing an examination, meeting specific business experience and education criteria, and paying a credential fee. As of 2021, the annual fee for maintaining the ABV Credential was $380.
Maintaining the ABV credential further requires ongoing compliance with work experience standards and continuous learning. Successful ABV professionals can append the designation to their name, thereby enhancing job opportunities, professional reputation, and potential earnings.
Key Takeaways
- Accredited in Business Valuation (ABV) is a professional designation for CPAs specializing in business valuation.
- ABV professionals must complete 60 hours of continuing professional education every three years to maintain their designation.
- CPAs pursuing an ABV certification must meet stringent educational and professional criteria.
The Path to ABV Certification
The ABV credential is awarded to CPAs who display substantial expertise, skills, and experience in business valuation. The comprehensive study program covers the foundational stages of the valuation process, professional standards, qualitative and quantitative analysis, valuation analysis, financial reporting, and litigation-related topics.
ABV designees frequently work for business valuation firms, consulting groups, or other organizations engaged in valuation processes.
Accredited in Business Valuation Requirements
Candidates aspiring for ABV accreditation must have an active CPA license or certificate issued by the relevant state authority. Prospective candidates must excel in the ABV Examination but there are waivers for certain recognized credentials like AM (Accredited Member of the ASA), ASA (Accredited Senior Appraiser), CFA (Chartered Financial Analyst), and CBV (Chartered Business Valuator).
Every three years, ABV holders must complete 60 hours of continuing professional education and pay an annual maintenance fee.
Business Experience and Education Requirements for ABV Candidates
Business Experience
Candidates need to have accumulated at least 150 hours of business valuation experience within the five years preceding their application date. Up to 15 hours of experience can be garnered through hands-on valuation case study tracks at AICPA conferences.
Education Requirement
Candidates must complete 75 hours of valuation-related continuing professional development (CPD) within the five years preceding the application.
The ABV Exam
The ABV Exam is conducted via computer and divided into two parts that must be passed within a 12-month window. Each part comprises a three-hour and 15-minute session with 15 minutes allocated for breaks. The exam standards include 90 multiple-choice questions per part—78 are distinct multiple-choice questions, and 12 are case studies with accompanying multiple-choice answers, designed to assess candidates’ competencies in valuation theory and methodology.
Related Terms: CPA, Business Analyst, Financial Analyst, Forensic Accountancy, Skills Development.
References
- AIPCA. “Annual Membership Dues”.
