The American Institute of CPAs has issued working drafts of two new case studies from its Accounting and Valuation Guide "Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies" and is seeking comments.
The first case study, "Value Fluctuations in a Real Estate Investment Financed with Debt," covers real estate valuation considerations and the impact of mortgage debt valuation on the equity value of a real estate investment. The second 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." Both new case studies were developed in response to feedback received on the working draft of the Guide, released on May 15, 2018.
The AICPA additionally re-released the working draft of the Guide to provide context for the new case studies, but not for feedback.
Professionals are asked to review the working drafts and submit feedback by Jan. 14, 2019. The working drafts are available on the AICPA's
