Navigating AICPA’s new guidance on secondary transactions when valuing private company securities
Date: Wednesday, September 18 Time: 2:00 – 3:15 p.m. ET Location: Virtual (joining link + instructions will be shared following RSVP)
Details: Please join EY for a CPE-eligible session aimed at helping you understand the AICPA’s recent updates to its Valuation of Privately-Held Company Equity Securities Issued as Compensation Guide. You will get an introduction to the new guidance and its impact on financial reporting valuations directly from the co-chair of the AICPA Equity Securities Task Force, EY’s own Amanda Miller.
The updated guidance on secondary market transactions better aligns with FASB ASC 820, Fair Value Measurement, and FASB ASC 718, Compensation—Stock Compensation. We expect this to have significant implications for financial reporting valuations of private company common stock underlying stock-based compensation awards. We will walk you through the changes you can anticipate, covering the following objectives:
Identify when to apply the new AICPA guidance on considering secondary market transactions in the valuation of privately-held company equity securities underlying stock-based compensation awards
Discuss how to determine the principal market for privately-held company equity securities underlying stock-based compensation awards
Explain what information should be considered when valuing privately-held company equity securities underlying stock-based compensation awards
Identify factors to consider when assessing the relevance of secondary market transactions and the relevance of other indications of value
The 1-hour, CPE-eligible session will be followed by a 15-minute Q&A, giving you access to EY subject matter specialists to answer your specific questions. We encourage you to submit your areas of interest on the righthand side of this page, or bring your questions to our live session.
