AICPA Revises 'Cheap Stock' Practice Aid

The American Institute of CPAs’ Financial Reporting Executive Committee has revised its practice aid for valuing privately held company equity securities that are part of executive compensation packages, Accounting Today reported Wednesday.

• The “cheap stock” practice aid, as it is called, offers examples for preparers, auditors and others involved with valuing and disclosing this element of executive compensation.
• It also delves into FASB standards on share-based payments and fair value measurement.
• The AICPA is asking for comments on the 182-page draft and would like them by March 31.