The AICPA’s Financial Reporting Executive Committee has issued a working draft of the revised “cheap stock” practice aid (Valuation of Privately-Held-Company Equity Securities Issued as Compensation). The first version was issued in April of 2004, so the revised draft considers many changes in 409A/123R valuation practice since then. BVWire readers are encouraged to review the new working draft and submit their informal feedback by May 31, 2011.

AICPA practice aids provide “non-authoritative guidance and illustrations for valuation specialists, preparers, auditors and others interested parties regarding the valuation and disclosures related to privately held company equity securities issued as compensation.”