Business Valuations & Asset Valuation

ASC 718/FAS 123R

Armanino provides independent third-party valuations for IRC 409A and ASC 718 (previously FAS 123R) compliance. To determine value, our professionals analyze each client’s business and financial plans, history, projections, and comparable companies and transactions. We have been engaged by more than 3,000 clients to value securities and options for tax, financial reporting, litigation and other purposes.

FASB ASC 718 Stock Compensation

In 2009, the Financial Accounting Standards Board codification project reorganized U.S. Generally Accepted Accounting Principles (GAAP) into the FASB Accounting Standards Codification (ASC). The employee elements are described under FASB ASC 718 Stock Compensation. Financial reporting for options granted to non-employees is considered in ASC 505-50 Equity-Based Payments to Non-Employees.

Expertise in ASC 718 Valuations and Calculations

ASC 718 requires that affected companies must expense stock options and other forms of equity based employee compensation. Among other things, in the process they must track all equity compensation activity, calculate fair value and adjust employee income tax deductions. Depending on the number of employees receiving awards, the frequency of grants and the variability of the terms, ongoing administration and compliance can pose a significant burden on your finance and accounting staff.

Efficient and Accurate Service

As a leading provider of valuations and stock option expensing services, Armanino can simplify this effort for you and get it done quickly. Our knowledge and experience let us handle this for you efficiently and accurately.