Accounting and Valuation Guide of Portfolio Company Investments
In mid-May, the AICPA issued a working draft of an Accounting and Valuation Guide: Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies. The guide was developed by the AICPA PE/VC Task Force and provides guidance and illustrations for preparers of financial statements, auditors and valuation specialists. The focus of the guide relates to accounting for and valuation of both equity and debt securities of portfolio company investment companies on measuring fair value for financial reporting purposes in accordance with ASC 946 and ASC 820. Comments on the exposure draft are being accepted by the AICPA until August 15, 2018.
A copy of the two-part exposure draft is linked here. We encourage all who will be impacted by the new guide to review and provide comments to the AICPA. Please direct any questions about this alert to our Financial Services Industry Practice Leader Jay Levy at firstname.lastname@example.org.
This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.