EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Overview
Private companies need to consider the valuation of equity securities issued as compensation under ASC 718 if they are planning to go public through an initial public offering (IPO) or a merger with a special purpose acquisition company (SPAC). A key financial reporting concern is often referred to as “cheap stock,” which is when the value of the underlying stock at the grant date is significantly less than the estimated IPO price or the fair value implied by the SPAC merger transaction.
Download PDF
