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Private Companies to Get Shortcut for Stock Comp Accounting (1)

Aug. 17, 2020, 2:34 PMUpdated: Aug. 17, 2020, 3:17 PM

Private companies offering employees shares in the business as part of their compensation packages could get a break on how to account for the costs of these pay perks.

The Financial Accounting Standards Board on Monday released a proposal that would give these private companies a shortcut in determining one input that’s central to making the call.

Under the proposal, private companies could use work they already do to meet tax code Section 409A to determine how to value their shares. That means they wouldn’t have to pay for separate valuation specialists to meet financial accounting requirements as prescribed in ...