First question - I am currently a CPA, and have seen the benefit that other CPA’s recieve that hold both the CPA and CFA license/ charter. For example, it improves a CPA’s ability to assess and perform valuations of businesses, financial instruments, goodwill impairment, etc. I was hoping that someone could provide the reverse view and point out any benefits that a CFA charterholder would have by also having a CPA license. **assuming that the CPA works in a traditional CPA field like public accounting, or industry accounting, and the CFA works in a traditional CFA role like valuations, research, etc. Second question - I know that work experience also impacts the following, but would a CFA charterholder be qualified to perform a valuation of a business that would potentially be purchased by another company?
Hi Miguel, I’m a CPA and have a Series 7 and 24 license so I am in the exact same boat as you are. I haven’t been able to get much insight because most have either one or the other. Both are very difficult exams and I think after passing one, most don’t even want to be bothered with the other or are looking to stay in accounting or finance. After looking at some of the CFA questions, I would say that the CPA would have a better understanding on what types of transactions would impact financial statement items. A CPA would have a more granular understanding on the numbers of the financials than the CFA. However, the CFA can analyze a company’s financial statements at a level not tested on the CPA exam. I would think that both designations definitely complement each other really well. To answer your second question, I would say yes. At valuing a business, a CFA would be as good as an ABV accreditation. Anybody else?
Maybe after passing level 1. But the CFA is designed for investment and portfolio management, not necessarily a body of knowledge for valuation. If it was I Banks would recruit more CFA’s.
Thanks for the response. Do you think a CFA would have an advantage over a ABV for valuing businesses?
Miguel21: I work for a business valuation firm, and from my experience (working with CPA/ABVs, ASAs, CBAs) the CFA is the most desired credential for business valuation. Maybe this is because there are many more CPAs than CFAs, or maybe because business valuation involves much more financial analysis than accounting knowledge. I am not a CPA. My firm is encouraging me to get the CFA. (I am current level II candidate) Personally, I think a CFA would have an advantage simply due to the greater difficulty (and greater knowledge gained) of earning the CFA credential as opposed to the ABV. There are many CFAs who work for business valuation firms.
GoVols, I’m doing the MAI/CPA track (recently dropped studying for Level 2 of the CFA exam). How would you suspect the MAI/CPA combo to be perceived in business valuation engagements? Go Hokies, btw.
kkent Wrote: ------------------------------------------------------- > GoVols, I’m doing the MAI/CPA track (recently > dropped studying for Level 2 of the CFA exam). > How would you suspect the MAI/CPA combo to be > perceived in business valuation engagements? > > Go Hokies, btw. kkent: From my understanding the MAI is specific to real estate. Is this correct? From a BV perspective, I dont’ think the MAI would be beneficial. However, if you interested in real estate appraisal, it would be a good way to go. Out of curiosity, if you are interested in BV, why did you stop pursuing the CFA? For BV, I think most practicioners think it is the best way to go. That was a heartbreaker against BC. You all let that one slip away. But hey, what can I say, we get Arkansas Saturday. I am expecting UT to get a beat down. McFadden is a stud.
I’m doing commercial real estate appraisal. I was just curious about how the MAI might correlate. Not looking to make the switch–just curious. Thanks for the reply. (No matter where Arkansas finishes this season, McFadden should be in the top 3 for Heisman.)
i’ll chime in on both of these conversations. sometimes bv folks will need a real estate appraisal to complement some other work. for instance, right now my firm was asked to help two parties to set on a fair lease rate. part of the due diligence has required us to hire out a re appraiser. if we had one in house, we wouldn’t need to. outside of one off stuff like that, i don’t see much correlation. you market to different people so its hard to cross sell, so to speak. as good as mcfadden (and jones! can you believe those guys are on the same team?) is, the rest of the team makes them more beatable. i think erik ainge will do ok and keep you guys in the game.
mlh97 Wrote: ------------------------------------------------------- > i’ll chime in on both of these conversations. > sometimes bv folks will need a real estate > appraisal to complement some other work. for > instance, right now my firm was asked to help two > parties to set on a fair lease rate. part of the > due diligence has required us to hire out a re > appraiser. if we had one in house, we wouldn’t > need to. outside of one off stuff like that, i > don’t see much correlation. you market to > different people so its hard to cross sell, so to > speak. > > as good as mcfadden (and jones! can you believe > those guys are on the same team?) is, the rest of > the team makes them more beatable. i think erik > ainge will do ok and keep you guys in the game. Man, I hope your right. Actually, it is not Ainge that I am worried about, but whether or not UT’s d-line will put up much of a fight. Their defense is the problem. They have been the achilles (did I spell that right?) heel all season long. I am not confident, but we shall see…
i’m a bama fan and defense has been a bit of an issue for us as well. except for ut (sorry to bring it up ) we just hope to outscore the other guys. we can generally score; we just keep the team on the other side of the ball from doing the same. the only real exception to that, i thought, was against fsu.
I am a CFA charterholder and also a CPA/ABV. I work in a CPA firm but my primary duties relate to business valuation. Studying the CFA curriculum has given me a much stronger understanding of the basis BV body of knowledge. Most of the CPA/ABV’s and ASA’s I come across are pretty awed by my completing the CFA program.
i’m in a similar postion to bayarea. the rigor of the cfa blows the asa curriculum out of the water.
I second that. I am a level II candidate and have been to several ASA courses. No comparison, CFA is 10,000x more difficult.
The MAI is actually a really good designation to have in BV if you specialize in certain aspects of the field, particullarly, FAS141/142 reporting. Many M&A deals include real estate/land components that need to be valued as well (esp with FAS157 coming out soon).