The AICPA’s Financial Reporting Executive Committee (FinREC) has just posted—for public comment—the draft of a new chapter to its guide on Valuation of Privately Held Company Equity Securities Issued as Compensation (originally released in March 2011).
Currently titled “Inferring Value From Transactions in a Private Company’s Securities,” this new Chapter 8 of the guide will provide a framework for evaluating private transactions—including secondary market transactions—and their relevance for estimating fair value of other securities within an enterprise.
To help reviewers put the new chapter in context, FinREC has also released the latest working draft of the guide. “However, we are not seeking feedback on the entire Guide—only on the new chapter and the new questions and answers (Q&As) in Chapter 12 of the Guide (starting on page 96),” says the FinREC announcement. To access the working drafts, click here. Interested parties are encouraged to submit their informal feedback by Oct. 1, 2012.
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