Expensing

Financial Intelligence knows that every client’s current platform accurately accounts for the majority of their grants, so we do not change what already works. Instead we create custom automated solutions for anything that doesn’t work and then seamlessly integrate all of the data into cohesive and complete results.

We support all compliant methods of expensing equity and liability awards as well as all types of performance awards. We understand the impact of changes to accounting methods, and to eliminate or minimize them we support both methods of applying expected forfeiture rates (static and forward-looking/hyperbolic). We also support plans with retirement eligibility.

Every quarter, we analyze forfeiture data for each identified experience group (based on the client’s parameters) to assist in determining whether the expected forfeiture rates should be adjusted for ASC 718 compliance.

We create custom solutions for plans and awards with complex terms and conditions requiring multifaceted valuations. We also create solutions for dividend child awards with and without expensing issues and track vesting and forfeitures based their parent award. If material grants (focal or other) are awarded within the current period and not timely entered into the administration platform, we do not delay processing; instead we process the grants separately using an accrual method that includes them in all processes.

For Employee Stock Purchase Plans (ESPP), we accurately calculate expense for plain-vanilla plans and modification incremental expense due to participant contribution increases and Plan resets. We account for expected and actual forfeitures.

We also provide detailed and summarized IFRS expense calculations for each of our client’s foreign subsidiaries.

Our clients know that Financial Intelligence provides them with the most comprehensive, accurate and customized equity compensation expensing reports.