Entries And Disclosures Of ASC 718 Report

Stock Option Expensing (ASC 718)

The section under ASC 718 report discusses the accounting entries and financial statement disclosures related to stock-based compensation.

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To understand the downloaded ASC 718 report, you must first create a form. Check out our support guide to learn how to create an ASC 718 report on Eqvista.

Here are the steps to follow:

Step 1: Double-click the file to open the ASC 718 report in Excel format that was downloaded. At the bottom of the page, you will see the different sections of the report. Here, click the tab “Entries and Disclosures”.

Step 2: The first section has a detailed mention of the journal entries and disclosures pertaining to the company stock options that were issued and non-vested during that time.

Compensation Expense: Sum of Total Compensation Expense of all Grants
Additional Paid in Capital: Sum of Total Compensation Expense of all Grants

Outstanding stock options at the beginning period, outstanding at the ending reporting period, unvested stock options at the beginning period & unvested stock options at the ending reporting period.

Weighted Average Fair Value per share

The weighted average fair value per share is calculated by taking the sum of each grant’s FMV times shares divided by the total number of shares.

Sum of grants of (FMV * Shares)/Total Shares

Total fair value

The total fair value represents the Weighted Average Fair Value per Share times the number of shares for each type

Weighted Average Exercise Price per share

The weighted average fair value per share is calculated by taking the sum of each grant’s exercise price times shares divided by the total number of shares.

Sum of grants of (Exercise Price * Shares)/Total Shares

Total exercise price

The total fair value represents the Weighted Average Exercise Price per Share times the number of shares for each type.

Intrinsic value per share

The Intrinsic value per share is calculated by finding the difference between the FMV and Exercise Price divided by the total number of shares.

Sum of grants of (FMV - Exercise Price)/Total Shares

Total intrinsic value

The total fair value represents the Intrinsic Value per Shares times the number of shares for each type.

Weighted Average Expected Term

The Weighted Average ExpectedTerm is calculated by taking the sum of each grant’s Expected Term times shares divided by the total number of shares.

Sum of grants of (Expected Term* Shares)/ Total Shares

Weighted Average Remaining Contractual Term (years)

The Weighted Average Remaining Contractual Terms is calculated by taking the sum of each grant’s Weighted Average Remaining Contractual Terms times shares by the total number of shares.

Sum of grants of (Remaining Contractual Term* Shares)/Total Shares

Apart from the above-discussed section, there are four more sections: Transaction Detail, Volatility calculation, Fair value calculation, and Expense Breakdown.

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