Stock Lock-Up Accounting Proposal Generates Strong Pushback

A stock you can buy and sell freely should be worth more than one that can’t be sold at all. So goes the criticism from opponents of an unusually divisive proposal from U.S. accounting rulemakers.

But the Financial Accounting Standards Board’s plan—which squeaked through on a 4-3 vote—says sale restrictions on equity securities should be ignored when the fair value of such stock is tallied.

“It doesn’t seem to pass the logic test,” said David Larsen, managing director at Kroll LLC.

Criticism like Larsen’s echoes through letters the FASB received on its proposal.

General Motors Co. ...