# Entries And Disclosures Of ASC 718 Report

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**

### Shares

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.

**(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.

**(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.

**(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.

**(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.

**(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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