Stock Comp Accounting Break Aims to Save Private Companies Time

Private companies that give employees shares or stock options as part of their pay will get a bit of relief on how they measure the value of them.

The number these companies come up with to follow U.S. tax laws can be used in their financial statements to comply with financial accounting requirements, the Financial Accounting Standards Board said Monday.

The update will help the private companies that hire separate valuation specialists to meet tax law and financial accounting rules. For others, it may mean fewer back-and-forth discussions with auditors and less paperwork, said Yan Zhang, partner ...