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Auditors Question if Stock Comp Shortcut Plan Saves Time, Money

Oct. 6, 2020, 8:59 PM

Auditors large and small questioned whether a proposed U.S. accounting rule change to simplify how private companies value their shares would be helpful.

All of the Big Four accounting firms, several mid-tier firms, and some smaller ones told the Financial Accounting Standards Board in comment letters that the plan wouldn’t save many companies money and it wouldn’t save auditors any time, either.

We “do not believe that the proposed practical expedient will have a significant impact on either the efforts required by our clients to estimate the fair value of an underlying share used to measure share-option awards or, in ...