edited in Business Valuation Certification (ABV) //

Accredited in Business Valuation (ABV) is a professional accounting credential. ABVs, also known as business value, are certified accountants who can help determine a business’s worth. For tax purposes, owners may need to know the value of their business. If they are looking to acquire a partner or sell the business, they may want to know its value.

ABV certification can only be obtained through the American Institute of CPAs. The AICPA, the American Institute of CPAs (CPAs), is the national professional association for certified public accountants. The organization was founded in 1887 and now has more than 421,000 members.

Business valuation professionals do not need to be certified. An ABV credential is a way to give applicants an edge in this field. ABV certification can be particularly beneficial to those who are interested in working in large accounting firms or the investment banking sector.

ABV Certification: Why?

• Credibility: ABV certification can boost your credibility. It takes a lot of work and more than 1,500 hours in the real world to get an ABV certificate. To maintain their ABV certification, ABV-holders need to continue education. Clients are more confident that ABV-certified professionals can accurately assess their business’s value.
• ABV Certification can open up new career opportunities: Accounting professionals who have earned the ABV certification will stand out when applying to jobs. The certification, which focuses on business valuation, can open up new career paths.
• Payscale: Accounting professionals who have earned ABV certification earn an average annual salary $89,000, according to Payscale. This is in comparison to the $89,000 that accounting professionals earning an ABV certification make. Payscale reports CPAs made an average annual salary of $70 390 as of May 2022. An ABV certification can increase a person’s salary by almost $19,000 per year.

How do you qualify for the ABV Credential

Two paths to the ABV credential are offered by AICPA. The first is only for CPAs licensed. To earn their ABV designation, current CPAs must meet these eligibility requirements.

• AICPA Membership A person must be a regular AICPA member in good standing. This requires payment of the AICPA annual fees.
• CPA License Valid: Candidates must have a valid CPA licence to take the ABV exam.
• Business Experience: One must have 1,500 hours of business valuation experience in the past five years.
• Requirement for Continuing Education: Candidates need to complete 75 hours of continuing learning about valuation within the last five years.

A person who is not a CPA, but works as a value professional can be eligible for ABV certification provided they meet the following criteria.

• Membership to the AICPA: One must be an associate, non-CPA or CPA candidate affiliate member and pay annual dues.
• General Education Requirement All candidates must have a bachelor’s degree from an approved school.
• Business Experience: The person must have completed 4,500 hours in business valuation experience within the last five years.
• Requirement for Continuing Education: Candidates need to complete 75 hours of continuing learning about valuation within the last five years.

The ABV exam must be taken by all candidates. AICPA exempts candidates who have passed the American Society of Appraisers credential examination, the CFA Institute’s chartered finance accountant exam level III or the Canadian Institute of Chartered Business Valuators chartered business valuator exam.

After passing the exam, candidates can submit their credential applications for approval. CPAs and valuation professionals must sign an intent to comply with ABV certification process.

Education Requirements

Candidates for ABV certification must have a bachelor’s from an accredited university. A majority of states require that CPAs have a bachelor’s degree.

This means that ABV candidates will need a bachelor’s degree. A bachelor’s degree can provide the foundational accounting knowledge candidates need. Some programs offer courses in valuation. To become a CPA, candidates may choose to earn a master’s in accounting.

ABV candidates also need to complete 75 hours of continuing education on business valuation. There are several classes that qualify for the AICPA.

Professional Requirements

ABV candidates must have real-world experience in business valuation before they can earn their credential. Before taking the ABV exam, CPAs must have completed 1,500 hours in business valuation experience over the past five years. CPAs are required to have 4,500 hours of experience in valuation within five years before they can take the ABV exam.

These hours can be earned by candidates working in business valuation. You can also have qualifying experience by reviewing the valuations of other professionals and providing valuation services as an employee, consultant or contractor. As part of their valuation experience, professors can also count their hours of instruction.

Before applying for certification, candidates must be AICPA members.

What does the ABV Exam cover?

Two multiple-choice sections make up the ABV exam. Both sections must be passed within 24 months. Candidates can either schedule their exam in person or opt to take an online self-proctored exam.

The foundational theory of valuation is covered in the first section. These topics are tested:

• Professional standards
• Financial reporting
• Defining the engagement
• Sources of economic and industry data
• Macroeconomic and environmental analysis
• Industry analysis
• Subject entity analysis

The second section is about how to implement valuation techniques. These topics are covered in the second section.

• Valuation approaches
• Intellectual property and other intangible assets
• Discounts, premiums, and other adjustments
• Conclusion of value

Candidates can use a nonprogrammable calculator on the day of exam. Notes are not allowed on the ABV exam.

Below is a table that shows the structure of ABV exams.

Score the Exam

The ABV exam can be passed or failed. After submitting their exam, test-takers will receive their score. Two weeks after the exam date, an email with exam results is sent by AICPA.

A test-taker who fails to pass the exam can retake it. Retake fees are $60 per module. Candidates may retake the exam multiple time within the 24-month exam window.

How do you register for the ABV Exam

ABV certification candidates can register through the AICPA website. To register, candidates do not have to meet the requirements for education or business experience.

To sign up for the ABV Exam registration site, test-takers should visit this link: Each exam module can be registered separately by candidates.

Register candidates receive an email from the AICPA explaining how to schedule an exam date at an in person testing center or online remote proctoring. The AICPA schedules exams by email. Test-takers are advised to check their email every two weeks.

ABV candidates may retake any test section provided they pass both within 24 months. The AICPA offers the ABV test all year. Candidates have 72 hours to reschedule their exam.

Exam Payment

Two modules are required for the ABV exam. Test-takers must pay separately. Below is how the cost of ABV exam for first-timers as per June 2022, based on membership type.

• FVS Section Members: $176 per module ($352 total)
• AICPA Members: $220 per module ($440 total)
• Non-Members: $275 per module ($550 total)

$60 per module is required to take the exam again. These fees cannot be refunded.

If a firm registers more than one candidate, candidates can receive a volume discount of $60 per module. Individuals can receive a $100 discount when they purchase the ABV Exam Review Course and register for the ABV Exam.

How can you prepare for the ABV Exam

Preparation is key to passing the ABV exam. It is better to start studying early so that you have a greater chance of passing the ABV exam. These tips will help candidates make the most of their time studying.

Top Tips

1. 
   
   Get the ABV Assessment
   
   
   AICPA offers a free online assessment tool that helps you assess your knowledge and identify areas where you can improve. The assessment covers nine topics, including information about fair value and cost of capital. Each topic includes ten questions.
2. 
   
   Take a Prep Course in Business Valuation:
   
   
   To help you prepare for the ABV test, both self-study and live courses are offered by AICPA. Interactive live courses are taught by ABV experts. More than 300 practice questions are included in the online self-study course.
3. 
   
   Find Real-World Learning Opportunities
   
   
   Students may be able to apply their business valuation knowledge to real-world problems as they gain experience. This will help candidates understand key concepts in business valuation and improve their exam performance.
4. 
   
   Make a Study Plan
   
   
   Studying for the ABV exam can be difficult due to work and family obligations. Candidates can stay focused by setting aside study time and adding it to their calendar.
5. 
   
   Form a Study Group:
   
   
   ABV candidates studying together can help test-takers stay focused and motivated while they study. Candidates can work together to help each other with difficult topics. Study groups are a great way to provide emotional support throughout the ABV certification process.

Take Practice Exams and Use Study Resources

How do you keep your accreditation in business valuation?

ABV-holders need to recertify each year. ABV-holders must maintain active AICPA membership and complete four hours professional ethics education every year. They also need to complete 60 hours of continuing professional learning (CPD), every three years. ABV-holders should do at least 10 hours per year of CPD.

An ABV certification is not inactive. ABV certification holders who do not meet the recertification criteria must either re-credential or file a petition to reinstate their status.

Do You Need Multiple Certifications?

Two other certifications are offered by the AICPA: Certified in entity and intangible Valuations (CEIV) or Certified in the Valuation of Financial Instruments (CVFI).

CEIV certification allows professionals to establish the value intangible assets such as customer relationships or patents. A CVFI allows someone to give fair value estimates of financial instruments used in financial reporting.

These certifications are useful for people looking to increase their opportunities in the business valuation field. Remember that certifications need to be maintained, such as continuing education and recertification programs. This means that the more certifications one has, the more they need to keep them.

Best ABV Certification Questions

How can you obtain an ABV credential

ABV certifications are awarded by the AICPA. A person must be a member of the AICPA and pass an ABV exam to earn ABV certification. Candidates must be CPAs and valuation professionals. Candidates must have business experience and meet continuing education requirements.

Are you a CPA required to obtain an ABV?

No. ABV certification is also available for valuation professionals who aren’t CPAs. The certification process is slightly different. Non-CPA candidates must have a bachelor’s degree. They also need to complete 3,000 hours of business valuation experience before they can be certified for an ABV.

How is the ABV test administered?

Either candidates can sit in person at the testing center or they can take an online self-proctored test. After purchasing the test module via the AICPA website, test-takers will be able to choose which method they prefer.

What is the length of the ABV exam?

There are two parts to the ABV exam. Each part is taken separately by candidates. Each section lasts three hours and fifteen minutes and includes a break of 15 minutes.

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Accounting.com first published the post Accredited In Business Valuation Certification (ABV).

Author: Justin Young

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