By Pete Settles
Sean McKee, practice leader for KPMG’s Public Investment Management practice, will be speaking about the new American Institute of Certified Public Accountants (AICPA) Accounting and Valuation Guide at the organization’s Forensic & Valuation Services conference on Tuesday, November 5, in Las Vegas.
The guide covers portfolio company investments of venture capital and private equity funds and other investment companies.
McKee was one of the leaders of an industry task force of valuation specialists, auditors, accountants and industry participants that was tasked to create the guide.
“With the continued expansion of private markets and headlines, which highlight the challenges of valuing unicorns and other private companies, the timing of the guide is right on target and will serve as a great tool for investment companies, their advisors and specialists.”
The task force’s goal was to create a guide that would provide guidance to investment companies, their advisers and valuation specialists in valuing their investments in the debt and equity securities of these private portfolio companies. It will also help investors and others in understanding how these investments are valued and the significant degree of subjectivity associated with valuing these investments.
“Valuation of the securities of these private companies in accordance with U.S. generally accepted accounting principles requires a great degree of judgment,” said McKee. “We hope that the guide will assist those performing such valuations and will help educate interested parties as to the nature and complexity of these accounting estimates”.
If you would like to speak with McKee to get more of his insights on the guide and valuation of securities for these private companies, please contact Pete Settles @pgsettles or firstname.lastname@example.org.