Defining Issues: AICPA Issues Practice Aid for Valuation of Privately-Held-Company Equity Securities Issued as Compensation
Jun 12, 2013
From the Financial Reporting View
This edition of Defining Issues reports that the AICPA recently issued a Practice Aid addressing the valuation of privately-held-company equity securities issued as compensation. The Practice Aid includes discussion on the application of FASB ASC Topic 820 on fair value measurements to measuring privately-held-company equity securities issued as compensation; considerations for determining the appropriate basis of valuation (e.g., a minority interest subject to current ownership versus the sale of a controlling interest in an entity); and leading practices for estimating the fair value of privately-held-company equity securities based on the company’s stage of development.