The US accounting board advanced its effort to address investment company concerns that current guidance doesn’t accurately capture the value of stocks subject to certain sale restrictions, including lock-up agreements after a company goes public.
The Financial Accounting Standards Board directed staff Wednesday to draft a proposal for public feedback addressing the measurement of equity securities like stocks that fall under contractual sale restrictions and are held by investment companies. The forthcoming proposal will be subject to a 15-day comment period given its narrow scope.
Contractual sale restrictions include lock-up agreements, which prevent corporate insiders from ...