AICPA Working Draft of Revised Cheap Stock Practice Aid Issued for Comment

Published on: 28 Mar 2011

Today, the AICPA’s Financial Reporting Executive Committee released for public comment a working draft of a revision of the AICPA’s practice aid Valuation of Privately-Held-Company Equity Securities Issued as Compensation, also known as the “cheap stock” practice aid. Originally issued in 2004, the practice aid provides nonauthoritative guidance on and examples illustrating the valuation of, and disclosures related to, issuances of equity securities as compensation by privately held companies. The working draft includes updates for the many new accounting and valuation issues that have emerged since the practice aid’s original issuance. Comments on the working draft are due by May 31, 2011.

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