The American Institute of CPAs’ Financial Reporting Executive Committee has published a working draft version of a revised practice aid for valuing equity securities issued as compensation for executives at private companies.

The revised AICPA practice aid, Valuation of Privately-Held-Company Equity Securities Issued as Compensation, also called the "Cheap Stock" practice aid, offers non-authoritative guidance and examples that preparers, auditors, valuation specialists, and others can use when working on valuation and disclosures related to privately held company equity securities that have been given out as compensation.

The document also deals with issues such as FASB standards on share-based payments and fair value measurement.

The AICPA is soliciting comments on the working draft, which should be submitted by May 31.

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