Appendix C Venture Capital, Business Development Companies, and Small Business Investment Companies 1 This appendix is nonauthoritative and is included for informational purposes only.
Update C-1 Accounting and Valuation : Portfolio Company Investments
In August 2019, the AICPA released AICPA Accounting and Valuation Guide Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies. The new guide provides nonauthoritative guidance and illustrations for preparers of financial statements, independent auditors, and valuation specialists regarding the accounting for and valuation of portfolio company investments held by investment companies within the scope of FASB Accounting Standards Codification (ASC) 946, Financial Services—Investment Companies , (including private equity funds, venture capital funds, hedge funds, and business development companies). The new guide may also be useful for non-investment companies, such as corporate venture capital groups or pension funds, which make investments in similar types of portfolio companies and pursue similar strategies (however, the numerous and varied aspects of these non-investment entities were not considered or contemplated in the preparation of the new guide).
The new guide addresses many accounting and valuation issues that have emerged over time (such as unit of account, ...
