The ISA NOW Blog has a new home!

You'll be redirected shortly.

Make sure to update your bookmarks.
If you aren't automatically redirected, click the link to visit the new blog.

Thursday, January 8, 2015

No New USPAP Revisions

By Leon Castner, ISA CAPP, Director of Education

Every time we see the passing of another year, we must consider whether any significant changes have been made in appraisal standards, either ISA or USPAP. Since USPAP is on a two-year cycle, any new revisions will be announced and become effective as of Jan. 1, 2016. That gives us a full year of relief from learning and practicing any changes.

That’s not to say that one should be unaware of communications given by The Appraisal Standards Board, since advisory opinions and notifications are provided on a frequent basis.

The last, for example, was on advice given about how one must state which approach or approaches to value/cost were used in a report and which one or ones weren’t. This guidance was delivered by way of an Oct. 28, 2014, “Q & A” announcement explaining the exclusion of approaches. It stated that simply stating “an approach was not developed” does not meet the USPAP requirement to explain why it was not developed. Stating that an approach was not necessary, without providing some basis for that opinion, fails to meet the definition of explain. The report must explain why an excluded approach is not necessary for credible results.

In another Q&A, the board commented on a question about the term “USPAP Certified.” Numerous advertisements and resumes seem to describe individuals who have completed the USPAP course as certified. The board said there is no such credential. The use of the expression “USPAP Certified Appraiser” is misleading. Completing a USPAP course does not entitle one to call oneself a USPAP Certified Appraiser.

Although we have commented on these issues and addressed them in Education Update newsletters, it is a welcome reinforcement of our earlier comments. So just because the current standards remain in effect for the upcoming year, it is a wise idea to keep your eyes and ears open for any clarifications or amplifications that may be issued.

No comments:

Post a Comment