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Private Companies Could Get Break on Stock Compensation Accounting

Feb. 12, 2020, 6:43 PM

Privately held businesses paying their workers with shares in their companies could get some relief on a narrow part of accounting for these payments.

The Financial Accounting Standards Board agreed Wednesday to issue a proposal that would give privately held companies a break on how to measure the fair value of a share on the date they grant it. They’d be able to measure the grant-date fair value based on work they already do to determine price inputs to meet tax reporting requirements.

Specifically, private companies could leverage work they already do to meet tax code Section 409A, which ...