AICPA Seeks Input on Two New Case Studies from the Guide on Valuation of Venture Capital and Private Equity Investments; Comments due January 14

The AICPA has issued working drafts of two new case studies from the AICPA Accounting and Valuation Guide Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies and is requesting feedback.

New Case Study 4A, Value Fluctuations in a Real Estate Investment Financed with Debt, illustrates real estate specific valuation considerations as well as the impact of mortgage debt valuation on the equity value of a real estate investment. The other case study, new Investment 6, Investment in Non-Performing Distressed Debt, will be added to Case Study 13, Business Development Company with Various Debt Investments. These new case studies were developed in response to feedback received on the working draft of the Guide which was originally released on May 15, 2018.

The AICPA has also re-released the working draft of the Guide, not for the purpose of soliciting feedback, but to provide context for the new case studies.