We understand the many complex and diverse accounting challenges associated with ASC Topic 718 and IFRS 2 compliance, and work closely with our clients to develop equity accounting and reporting solutions that are custom-fit to align with their existing tools and capabilities.
Making Equity Compliance a Reality
Equity accounting is about far more than knowing the rules of the road. We bring a consultative approach to our clients to help them wrangle data and create repeatable processes. Our services include:
- Auditing reporting methodologies and calculations across internal teams and systems;
- Reconciling financial reporting when clients move between platforms or when they convert from spreadsheets to a new platform;
- Educating client teams on equity valuation and equity accounting techniques and best practices to solidify in-house capabilities;
- Offering guidance on mark-to-market accounting for liability-classified awards; and
- Providing fully outsourced financial reporting.
Equity Award Reconciliations & Modifications
Topic 718 requires companies to assume estimated forfeiture rates for equity awards and to eventually reconcile these estimates with the actual expense accrued at the time of vest. Radford’s proven methodology for addressing the reconciliation of assumed forfeiture rates is an industry standard. Reconciliations raise a number of difficult challenges, which our valuation services team can manage in a timely, accurate and robust manner. In addition, as equity award modifications become more commonplace, we've developed a number of sophisticated and reliable solutions to ensure accurate compliance.
Employee Stock Purchase Plan (ESPP) Support
Employee Stock Purchase Plans with look-back provisions provide participating employees with significant upside potential, but also carry with them a number of unique valuation considerations. Our team understands the nuances of ESPP design, and can help clients address complex valuation issues involving discount options, call options, put options and interest foregone considerations. Furthermore, navigating the many accounting challenges associated with Employee Stock Purchase Plan modifications, resets and rollovers — along with the reconciliation of assumed forfeiture rates— is no easy task. Our experts are well-equipped to handle all of these issues across all types of ESPPs.