Calculated Value Method of SFAS No. 123R

With the implementation of SFAS123R, the calculated value method is now required for nonpublic companies without an internal market for its stocks or options, or for those unable to identify similar public entities for which share or option price information is available, to value its stock options. The implementation of the calculated value method requires the use of an option pricing model and a volatility measure of an appropriate industry sector index. A comprehensive example of the calculated value method, illustrating in minute detail each step in its calculations of the valuing of a typical stock option of a nonpublic company, is available in the article, “A Simplified Explanation and Example of SFAS 123R’s Calculated Value Method“.

About William Brighenti

William Brighenti is a Certified Public Accountant, Certified QuickBooks ProAdvisor, and Certified Business Valuation Analyst. Bill began his career in public accounting in 1979. Since then he has worked at various public accounting firms throughout Connecticut. Bill received a Master of Science in Professional Accounting degree from the University of Hartford, after attending the University of Connecticut and Central Connecticut State University for his Bachelor of Arts and Master of Arts degrees. He subsequently attended Purdue University for doctoral studies in Accounting and Quantitative Methods in Business. Bill has instructed graduate and undergraduate courses in Accounting, Auditing, and other subjects at the University of Hartford, Central Connecticut State University, Hartford State Technical College, and Purdue University. He also taught GMAT and CPA Exam Review Classes at the Stanley H. Kaplan Educational Center and at Person-Wolinsky, and is certified to teach trade-related subjects at Connecticut Vocational Technical Schools. His articles on tax and accounting have been published in several professional journals throughout the country as well as on several accounting websites. William was born and raised in New Britain, Connecticut, and served on the City's Board of Finance and Taxation as well as its City Plan Commission. In addition to the blog, Accounting and Taxes Simplified, Bill writes a blog, "The Barefoot Accountant", for the Accounting Web, a Sift Media publication.
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