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

December 17, 2018

The AICPA’s Financial Reporting Executive Committee (FinREC) 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 (the Guide). 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.

Along with the new case studies, FinREC has also re-released the working draft of the Guide. Please note, however, that the Guide working draft is being re-released not for the purpose of soliciting feedback on the entire Guide, but to provide context for the new case studies.

We are looking for your informal feedback on these new case studies. All comments will be kept confidential and will not be posted on the AICPA Web site. If you would like to provide comments, please e-mail them to Yelena Mishkevich at yelena.mishkevich@aicpa-cima.com by January 14, 2019. FinREC and the PE/VC Task Force that developed these new case studies are looking forward to hearing from you.

Please note that these new case studies will undergo thorough editorial review before they are finalized and included in the final Guide. As such, when commenting, please do not worry about editorial issues.

Download New Case Study 4A

Download New Investment 6 from Case Study 13

The working draft of the Guide (which is being provided for context only and not to solicit feedback) is split into two documents (Part I [chapters 1-14] and Part II [appendices A-C and Glossary]). Note that the Task Force considered all feedback received on the working draft of the Guide during the comment period that ended on August 15, 2018, and has made edits to address this feedback.  These edits will be incorporated into the final version of the Guide but are not incorporated into the Guide working draft presented here.  The Guide working draft presented here is identical to the version released on May 15, 2018.

Download Part I of the Guide Working Draft

Download Part II of the Guide Working Draft