FASB Issues Proposal Related to Determining the Current Price of an Underlying Share for Equity-Classified Share-Option Awards for Nonpublic Entities

The FASB has issued a proposed ASU, Determining the Current Price of an Underlying Share for Equity-Classified Share-Option Awards. The proposal would allow a “nonpublic entity to determine the current price of a share underlying an equity-classified share-option award using a valuation method performed in accordance with specific regulations of the U.S. Department of the Treasury that provide acceptable methodologies to comply with the ‘presumption of reasonableness’ requirements of Section 409A of the U.S. Internal Revenue Code.”

For more information, see the press release on the FASB’s Web site.