AICPA re-releases cheap stock practice aid; comments requested prior to May 31


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 “nonauthoritative 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.”


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