Hope this blog finds you doing great. A lot going on in the field of valuation of derivatives. In a recent survey by the AICPA, there is much concern about risks inherent in derivatives and the approaches used to value these constructs. For example, 55 percent majority of the CPA business executives expressed concern about financial instrument valuations and fifty-five percent said they are concerned about the valuation of derivatives with 6 percent reporting significant concern and 49 percent reporting slight or moderate concern. Fifty-six percent said it would be easier to figure the value of complex financial instruments if they were measured and reported on a consistent and transparent basis.
These are significant findings and just as important, they same survey respondents believe that derivatives are getting even more complex. What is the solution then? Obviously, more training is needed in this discipline. With this said, the Center for International Business Valuation along with the International Association of Certified Valuation Specialists will be offering a three-day intensive training program (December 16th-18th in Orlando, FL) leading to an advance credential in fair value of financial instruments. See the below link for details. Hopefully, this is the start of creating a uniform approach in the valuation of these types of instruments.
Until next time……………………