Since the introduction of ASC Topic 718 (formerly FAS 123R) in 2006 for privately-held companies, proper stock option reporting, expensing and disclosures have been a challenge for many early-stage companies with employee stock option plans that need to report in accordance with GAAP. We’ve covered this topic in many past articles and look to revisit the basics in a live presentation next week.
We hear that while many more CFOs are more familiar with the topic than in the past, most finance professionals continue to look for answers and easy explanations that cover valuation, expensing, and the requisite disclosures. That’s where we can help.
On Wednesday, July 18th at 2:00 pm ET, we will present “Straight Talk on Stock Option Expensing Under ASC Topic 718: Variables, Terms and Disclosures, Explained,” which will review:
- The six variables used by the Black-Scholes formula to determine the grant-date fair value for a stock option award.
- The eight terms you need to know to properly amortize the fair value over the service period, including true-ups related to vesting and forfeitures.
- Two reports that will cover the requisite disclosures as well as the data back-up that your auditors will want to see.
Have a question on ASC Topic 718 that you’d like us to answer at the webinar? Share it with us in the comments below.