About ASC 718
ASC 718 (formerly SFAS 123R) comprises of six primary areas: 1) Overall, 2) Awards Classified as Equity, 3) Awards Classified as Liabilities, 4) Employee Stock Ownership Plans, 5) Employee Share Purchase Plans and 6) Income Taxes.
ASC 718-10 notes that it “provides general guidance related to share-based payment arrangements with employees.”
718-50 Employee Share Purchase Plans:
ASC 718-50 notes that it provides guidance to entities that have employee share purchase plans, but entities “must first determine whether the plan is compensatory or non-compensatory.”
718-20 Awards Classified as Equity:
ASC 718-20 notes that it provides guidance for share-based payment awards that are classified as equity. It also notes that it is “interrelated with Subtopic 718-10, which contains guidance applicable to instruments classified as either equity or liabilities issued in share-based payment transactions.”
718-40 Employee Stock Ownership Plans:
ASC 718-40 includes guidance on employee stock ownership plans and notes the following purposes for entities using these plans: a) To fund a matching program for a sponsor’s 401(k) saving plan, formula-based profit-sharing plan, and other employee benefits; b) To raise new capital or to create a marketplace for the existing stock; c) To replace lost benefits from the termination of other retirement plans or provide benefits under postretirement benefit plans, particularly medical benefits; d) To be part of the financing package in leveraged buy-outs; e) To provide a tax-advantaged means for owners to terminate their ownership; f) To be part of a long-term program to restructure the equity section of a plan sponsor’s balance sheet; g) To defend the entity against hostile takeovers.
718-740 Income Taxes:
ASC 718-740 notes the following: a) This Subtopic addresses the accounting for current and deferred income taxes that results from share-based payment arrangements, including employee stock ownership plans; b) This Subtopic specifically addresses the accounting requirements that apply to the following; c) The determination of the basis differences which result from tax deductions arising in different amounts and in different periods from compensation cost recognized in financial statements; d) The recognition of tax benefits when tax deductions differ from recognized compensation cost; and e) The presentation required for income tax benefits from share-based payment arrangements.
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ASC 718 Reporting Suite
ASC 718 Valuation
Our Black Scholes model values all grants & awards at both the grant and tranche level so that valuations can be setup to meet exact ASC 718 requirements for our clients.
ASC 718 Expense Accruals
Our Expense Accrual Reporting allows you to generate expense accrual reports by entity, subsidiary, department, section and many more participant level fields.
Get your straight lined or front loaded expense accrual breakdowns in the format you want with our expense reporting with the capability to apply performance factors where required and a full audit trail leading back to the original valuations.
ASC 718 Disclosure Reporting
Access all of your complex disclosure figures for quarterly and end of year submissions from our detailed disclosure reporting entries.
ASC 718 Fair Value Reporting
Generate our fair value reports in multiple formats.
We have comprehensive reporting for all Black Scholes inputs as well as detailed processed and non processed fair value reports.
ASC 718 Deferred Tax Reports
Widely recognized as one of the most complex areas under ASC 718 tax accounting for equity compensation and it can be simplified using the Global Shares reporting suite.
With all of the expense accruals linked dynamically to the deferred tax reports, running your on-going deferred tax reports has never been easier.
ASC 718 Earnings Per Share Reports
Ensure that your entities can disclose earnings per share by calculating and disclosing earnings per share in accordance with the ASC 718 Standard.
The range of EPS & Common Equivalent Reporting available to our clients makes delivery of these reports a simple task.
Global Shares has an experienced staff of analysts and partners who are dedicated to providing you with the accurate information you need and expect, coupled with the personal attention you deserve. We can supply a specialist consultant to supervise every project to ensure valuation techniques being used to determine your financial reporting are meeting the exact standards of ASC 718
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Having access to our software to automate your reporting is one thing, but Global Shares goes beyond that when it comes to creating impeccable financial reports.
Our specialist team will help implement your historic data as well as providing guidance and solutions on how to utilize the software best, going forward.