Comments wanted on draft chapters of revised cheap stock guide

BVWireIssue #262-1
July 10, 2024

fair value for financial reporting
fair value, fair value measurements, accounting, american institute of certified public accountants (AICPA), compensation, stock-based compensation

The AICPA’s Financial Reporting Executive Committee has released a working draft of two updated chapters from the AICPA Valuation of Privately-Held Company Equity Securities Issued as Compensation Guide. The chapters address secondary market transactions, and the revisions are designed to better align with FASB ASC 820, Fair Value Measurement, and FASB ASC 718, Compensation—Stock Compensation. The new guidance will likely have significant implications for financial reporting valuations of private-company common stock underlying stock-based compensation awards. Comments are due by September 20.
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