Valuation of Stock Compensation

The first step in the accounting, financial reporting and taxation of stock compensation is valuation. We provide advice on valuing both publicly traded and private stock. For options and similar instruments (such as stock appreciation rights and restricted stock units) we provide the following services:

• Calculation of fair value using Black-Scholes-Merton or a binomial lattice
• Calculation of volatility
• Expected term calculation

More information about option pricing services ...

Stock Compensation Accounting

We can provide assistance with all of the accounting associated with stock compensation, including:

• Determination of the grant date
• Determination of the service inception date
• Analysis of vesting provisions
• Determination of requisite service period
• Amortization using graded-vesting
• Calculation of current tax benefit
• Calculation of the additional paid-in capital (APIC) pool
• Classification of instruments as equities or liabilities
• Earnings per share
• Valuation allowance for tax provision
• and all other accounting required under Topic 718

Financial Disclosures

FASB ASC Topic 718 (formerly SFAS 123(R)) mandates nearly thirty different disclosures for stock compensation. We can calculate the amounts required for these disclosures, and provide model disclosures that can be incorporated into financial statements, including:

• Footnote disclosures required by Topic 718 (SFAS 123(R))
• Line items for the balance sheet, income statement, shareholders' equity statement, and statement of cash flow

SEC Compliance

We provide consulting services in the following areas:

• Financial disclosures for stock compensation required for SEC filings, including periodic reports and proxy statements
• Regulation S-X compliance