FASB issued a proposal Monday, Aug. 17, that would make it easier for private companies to determine the fair value of a share-option award on its grant or modification date.
Under the proposal, a nonpublic entity could determine the current price of a share underlying an equity-classified share-option award using a valuation method performed in accordance with specific Treasury regulations.
FASB will accept comments on the proposal through Oct. 1. Learn more.