Audit-ready ASC 718 reports in minutes, rather than weeks
Let Capshare’s stock expense software do the heavy lifting to give you all of the necessary ASC 718 (FAS 123R) entries and disclosures for your financial statements.
Capshare automates your ASC 718 expense and makes the process easy. With your cap table on Capshare, just spend five minutes to select the reporting period you want to cover, choose comparable public companies to calculate volatility, and answer a few clarifying questions, and Capshare will take care of the rest.
Capshare’s SOC-1 coverage of its ASC 718 calculations helps provide a smooth audit process. For additional questions, we have a number of auditor specific explanation materials available and give you access to on-staff Certified Equity Professionals (CEP’s) ready to talk through any concerns directly with you and your auditors.
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How much does it cost?
Capshare’s ASC 718 stock expensing tool costs an additional $149 per month for Pro or Enterprise users on Capshare. This includes unlimited reports during the year, so you can easily use Capshare to tie out previous period expenses, or even run monthly reports.
How does it handle employee vs. non-employee grants?
Employee grants, either ISO or NSO, fall under ASC 718 regulations, and Capshare applies the appropriate methodologies to calculate their expense. In addition, non‐employee grants fall under ASC 505‐50 and are automatically caught and handled under a separate set of calculations.
What method is used to calculate the fair value of options?
Capshare uses the Black‐Scholes option pricing formula to calculate the fair value for option grants.
How is volatility calculated?
Capshare is integrated directly with S&P Capital IQ. This allows you to select comparable companies from which we automatically calculate volatility for each grant as of its grant date. Check out this article for a more complete explanation of the volatility calculations in Capshare.
How is an appropriate forfeiture rate determined?
Capshare automatically calculates historical forfeiture rates for your company based on the cancellations recorded on your cap table. In addition, we’ve provided benchmark forfeiture rates based on data collected from cap tables managed on Capshare. Ultimately, you can select the forfeiture rates that make the most sense given your situation.
Have Capshare’s stock expense reports been audited by the Big 4?
Absolutely. Capshare’s ASC 718 reports have been through numerous audits by Big 4 accounting firms, as well as many regional firms. We've performed hundreds of stock expense engagements manually, and we've built the ASC 718 software from that experience along with auditor feedback.
How long does it take to complete the ASC 718 report?
Once a cap table is completely uploaded to Capshare, the ASC 718 report can be prepared with another five minutes of work. Once the report is filled out, Capshare may take at most 30 minutes to prepare all the calculations for the largest of cap tables. Everything is done in the background, and you are notified when the report is ready.
Let’s discuss what Capshare would look like at your company. Our suite of software and services can be tailored to fit any company's needs.