A Look into the Future of the Appraisal Profession
By Francisco “Frank” Rosillo, CPA, ABV, CBA, CFE, ABAR
Chairman, ABAR Qualifications Review Committee, Institute of Business Appraisers
Managing Director, The Valuations & Forensics Advisory, LLC. frosillo@valfor.net www.valfor.net
In today’s litigious business environment, stakeholders in the appraisal process, as users of the work products of opposing appraisers, often find themselves frustrated.
Ultimately, this frustration results in stakeholders averaging differing opinions of value, without the benefit of a means to assess the credibility of the foundation upon which each opinion of value rests – which may be tantamount to saying that the good, the bad and the ugly can somehow be suitably reconciled on the road towards achieving a credible finding to rely upon. Consequently, many stakeholders in the appraisal process are now reluctant to accept the work of appraisers. Nonetheless, timely decisions need to be made concerning matters involving the determination of value. From this state of frustration, a renewed interest in the field of appraisal review has evolved.
For example, the upcoming 2010-2011 revisions to the Uniform Standards of Professional Appraisal Practice (USPAP) points to these concerns by making several changes that will become effective on January 1, 2010, involving improvement on the clarity, understandability and enforceability of the ETHICS RULE, the COMPETENCY RULE and STANDARD 3: Appraisal Review, Development and Reporting.
Likewise, for the past year and a half, the Institute of Business Appraisers (IBA) has been involved in what we like to refer as a “journey into the future of the appraisal profession,” by introducing a qualitative user oriented perspective into the already well established business appraisal standards promulgated by IBA, and specifically, the process of business appraisal review. (*) IBA’s newly redesigned forward looking Accredited in Business Appraisal Review (ABAR) credential is part of a dedicated effort to embark on this journey into the future.
The ABAR credential is structured to enhance public trust in the appraisal profession by pioneering a new qualitative process to business appraisal review. The ABAR process also provides the ABAR practitioner with a solid and practical framework upon which a practitioner can issue an opinion as to the credibility of another appraiser’s work product.
The ABAR provides the valuation practitioner with a set of ready to use, well defined tools to effectively conduct a business appraisal review engagement.
As a forward looking credential, the ABAR introduces a new level of service designed to provide assurance to stakeholders in the appraisal process.
(*) Business appraisal review is the act or process of developing and communicating a reviewer’s opinion regarding the credibility of the work product of another business appraiser. In order to issue an ABAR business appraisal review opinion, orally or in writing, a business appraisal review is to be conducted in conformance with the applicable Business Appraisal Standards promulgated by the Institute of Business Appraisers.
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