Monday, October 6, 2014

New Report Requirements

EFFECTIVE SEPT. 1, 2014

The ISA Board of Directors has approved the following new report requirements for our accreditation levels in ISA, effective as of Sept. 1, 2014. Those involved in the process of receiving their AM or CAPP designation will be allowed to finish under the old requirements, but any new applications will reflect these new guidelines.

Member Level: As part of the member level process that includes satisfactorily completing the Core Course for Appraisal Studies, each applicant must submit an appraisal for the intended use of a Federal (US/Canada) tax submission. This is done during the Core Course and must be passed as part of the course requirements. (This is our current requirement and does not change.)

AM LEVEL: As part of the AM process, each applicant must provide an insurance coverage appraisal that consists of five items in one’s specialty. For ARC, the list includes one from each of the following categories: silver, furniture, glass, ceramics, and textiles. For FA, the list includes one from each of the following: painting, sculpture, print, watercolor, and frame. The appraisals must be both USPAP and ISA compliant and demonstrate competency and expertise in the specialty areas. All other product areas must be submitted to the Specialty and Advanced Studies Committee (formerly Specialty Studies). They will provide guidance in terms of the five specific items. Applicants will have 45 days from the end of their specialty class (or application if in SASC) to submit their reports.

CAPP LEVEL: Candidates for CAPP must still sit for the CAPP exam and provide an appraisal report for Designation & Review grading. This report will be a Broad Evidence Report that requires the member to show competency in both methodology and product expertise. The applicant will choose three items in their specialty as if they were part of a claim. They will be asked to provide the following information: fair market value, replacement cost, salvage or scrap value, and loss on value. A specific scenario will be provided upon application. Time limitations will be similar to the AM level. (Please check the CAPP application packet for additional details.)

Notes: These new requirements were issued based on recommendations submitted by the Credentialing Task Force set up last winter. These changes will improve the level of our credentialing process and not duplicate requirements. Each member of ISA will have submitted a formal Federal appraisal for grading. Each AM member will have shown expertise in product knowledge application in an appraisal report done for replacement costs. The CAPP level will demonstrate a candidate’s proficiency in applying different appraisal objectives to the same property. These standards are clear, easy to implement, and provide more uniformity in grading. Guidelines and timelines will be provided to all applicants and graders.

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