Financial Intelligence helps companies comply with Statement of Financial Accounting Standards 123R and the related SEC Staff Accounting Bulletin 107 that requires companies to expense stock options, as well as other forms of equity compensation.

Equity Compensation

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Statement of Financial Accounting Standards (SFAS) 123R (Accounting for Stock-Based Compensation), and the related SEC Staff Accounting Bulletin (SAB) 107, require that companies expense stock options, as well as other forms of equity compensation.

We fully support our public clients in all aspects of SFAS 123R, from routine valuation and reporting requirements to unique events that require in-depth knowledge, such as:

  • Option valuation, including expected termination, volatility and forfeiture rates
  • Mergers, acquisitions and spin-offs
  • Option exchanges, repricings and other modifications
  • Employee Stock Purchase Plan valuation and expensing
  • Data analysis and correction, including support for Equity Edge
  • Financial statement disclosures

In addition to traditional stock options, we also fully support corporations with other forms of equity compensation structures, including:

  • Restricted stock
  • Restricted stock units (RSU)
  • Stock appreciation rights

In connection with our 409A valuation practice, we specialize in getting nonpublic companies started on the right path to a smooth audit with fully-compliant option valuation (employee and non-employee), expensing, documentation and audit support, including:

  • Peer firm volatility analysis
  • Expected term estimation
  • Estimated forfeitures
  • Expense allocation
  • Nonemployee option valuation and expense allocation

Our proven experience in solving extremely complex and diverse revenue recognition issues allows us to resolve issues and form defensible conclusions; document conclusions to satisfy demanding audit situations; and draft disclosures and complete the SEC filings quickly.