Stock-based compensation expense, calculated from grant data
Most teams take a stock compensation report from the equity system and rework it by hand: map it to departments, adjust for forfeitures, and book the entry. From option and RSU grant data, the Accounting Agent calculates the period expense and drafts the entry, split the way your team reports it.
What the Accounting Agent prepares
- Period expense by grant, award type, and vesting schedule for options and RSUs
- Expense allocated to departments, cost centers, and entities using your mapping
- A roll-forward of awards granted, vested, exercised, and forfeited in the period
- Drafted expense and APIC entries, with the calculation attached
- Differences between the equity system report and the GL, flagged for review
How it works
- Pull the data. Grant, vesting, and forfeiture data come from your equity records, and employee data from your HRIS.
- Prepare the work in your logic and format. The Accounting Agent uses your fair values, attribution method, and forfeiture policy, in your schedule format.
- Review and approve. You adjust any judgment items and approve. The entry then posts to your ERP.
What stays in your control
- Valuation inputs and policy elections stay with your team
- The entry posts only after approval
- Every amount traces to the underlying grant
Standard note
ASC 718 and IFRS 2 require share-based payment awards to employees to be measured at fair value at grant date and recognized as expense over the period in which employees provide service.
FAQ
How is stock-based compensation expense calculated?
For equity-classified awards, expense is generally the grant-date fair value recognized over the vesting or service period, adjusted for forfeitures under your policy. The Accounting Agent runs that calculation for each grant every period.
Where do the fair values come from?
From your team or your valuation provider. The Accounting Agent works from the fair values you already set and uses them to calculate and allocate the period expense.
How are forfeitures handled?
Under ASC 718, a company elects either to estimate forfeitures or to account for them as they occur; IFRS 2 requires an estimate. The Accounting Agent applies the policy your team has elected.
