This handbook contains some basic terminology that individuals responsible for equity compensation reporting should understand in order to properly calculate and report the expense under ASC 718.
This is an introductory guide and does not include advanced topics. For assistance with your expense accounting, you should consult a qualified professional.
The terms are limited to those most relevant to privately-held companies that grant employee stock options. The terminology in this handbook is organized into three main categories:
An understanding of the terms presented in these three sections will help you accurately report your equity compensation expense.