New Private Company Relief for Share-Based Payments

Thoughtware Article Published: Nov 01, 2021
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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. 

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