Now that valuation is such a sticky part of accounting, alliances are beginning to form, at least on the international level.

The International Federation of Accountants and the International Valuation Standards Council have signed a “memorandum of understanding” to work together toward establishing consistent valuation standards as they related to auditing and financial reporting. The two groups haven’t established a specific agenda, but they’re planning to share staffing and resources in a way that will bring valuation expertise to auditing and accounting issues, said Jim Sylph, IFAC’s executive director for professional standards.

Both groups have come to recognize that valuation is an increasingly important part of accounting and financial reporting, said Sylph. U.S. and international accounting rules have migrated from a traditional reliance on historical cost toward more use of fair value, which requires a great deal more judgment and expertise. “We felt there are a number of areas where we both could benefit from mutual cooperation,” said Sylph.

IFAC is a global accounting organization that doesn’t write accounting standards directly, but it has a voice in the accounting standard-setting process and it oversees professional bodies that write global professional rules for public sector accounting and auditing. IFAC hopes initially to tap the expertise of the IVSC in working with the International Auditing and Assurance Standards Board, which is working on new guidance around the auditing of derivatives, said Sylph.

But the cooperation won’t be limited to auditing issues. “In any area where accountants are dealing with issues around valuation, it will be useful to pick the brains of people who are doing this on a full-time basis,” he said. “We hope to bring their expertise to bear on anything we issue from the IFAC.”