AICPA Proposed New Valuation Performance Standards
The AICPA and partner organizations introduced a draft framework to replace existing valuation performance standards.
Updated on Oct. 13, 2026 in Taxes
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The American Institute of CPAs, American Society of Appraisers, and Royal Institution of Chartered Surveyors have released an exposure draft for a new Valuation Performance Framework. This proposed structure is intended to replace the previous Mandatory Performance Framework to improve engagement quality and transparency.
Why it matters
The new framework seeks to bolster consistency and transparency in valuation engagements across the country. Additionally, the AICPA has requested IRS clarification regarding Form 8050 to protect sensitive information during the public inspection of tax returns.
The proposed Valuation Performance Framework replaces the previous Mandatory Performance Framework. The AICPA also addressed multiple tax forms, including 990-T, 990-PF, 4720, and 1120-POL, in its recent communications.
The players
American Institute of CPAs
This is a national professional organization for certified public accountants in the United States.
American Society of Appraisers
This organization represents professionals across multiple appraisal disciplines.
Royal Institution of Chartered Surveyors
This is a professional body that promotes and enforces international standards in the valuation and land sectors.
Internal Revenue Service
This is the federal agency responsible for the administration and enforcement of tax laws in the United States.
The details
The AICPA also published a new artificial intelligence practice aid titled Artificial Intelligence (AI) Considerations for Financial Statement Auditors. This document provides guidance on organizational and auditor use of AI, with future updates planned regarding material misstatement risks and audit evidence.
Timeline
The AICPA released the AI audit practice aid on October 12, 2026.
The organization sent a formal letter to the IRS on October 12, 2026.
Stakeholders must submit feedback on the proposed framework by December 22, 2026.
Market Dynamics
This initiative reflects an effort to update privacy protocols related to the IRS public inspection requirement for tax returns. By refining these standards, the organizations are addressing the evolution of tax administration and reporting transparency.
The proposed changes aim to improve the quality of financial valuations, potentially impacting how stakeholders view valuation reports. Meanwhile, the IRS request aims to enhance data privacy for organizations subject to public tax return inspections.
The takeaway
These updates demonstrate a shift toward more rigorous professional standards and increased data privacy in financial reporting. Professionals and organizations should monitor these developments as new audit and valuation frameworks are finalized.
Further reading
For additional context on regulatory updates, visit the United States Taxes section.
Source note: This article includes information reported by Accounting Today.
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