On October 25, 2021, FASB issued Accounting Standards Update 2021-07, Compensation—Stock Compensation (Topic 718): Determining the Current Price of an Underlying Share for Equity-Classified Share-Based Awards, which creates a practical expedient for private companies to use a reasonable application of a reasonable valuation method to calculate the fair value of the equity shares underlying a share-option award. This article provides details on the practical expedient.
New Private Company Relief for Share-Based Payments
June 13, 2022
A new ASU creates a practical expedient for private companies calculating the fair value of the equity shares underlying a share-option award.
