Stock options and other forms of equity are common in growing private companies. However, given market volatility and all-time market highs, there’s renewed attention being given to how tricky it can be to assign an accurate valuation to private company shares. In response, some companies have petitioned for a simpler method for valuing shares—one that’s less susceptible to market ups and downs.

But existing guidelines and principles have their benefits, according to Equity Methods CEO Takis Makridis. They offer management a reasonable amount of flexibility, while helping to keep estimations aligned with accepted financial economic theory.

Takis’ comments appear in Bloomberg BNA’s June 28 Accounting Policy & Practice Report. You can read the article here.