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Forfeiture & Expected Life Tool Public Company Volatility Service Download our Whitepaper (494KB)
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STOCK OPTION TOOLS AND MODELS Under current FASB accounting guidance, companies are now required to value their employee stock options. To meet this need, we offer tools and models to help companies with the valuation process. ASC 718 (formerly FAS No. 123r, “Share Based Payments”) which amends FAS No. 123 “Accounting for Stock-Based Compensation” is effective for fiscal years beginning after June 15, 2005, and requires the expensing of stock options. Previously, companies had a choice between expensing the options or disclosing the valuation. As few companies chose the expense method, many companies will now be recording stock option expense for the first time. Download our free whitepaper for more information on how this new standard may impact your company. To assist you with the implementation of ASC 718, we offer the following Excel-based products:
IMPORTANT: After completing the PayPal payment, click the 'Return to Merchant' button to start the download. All of our stock option products can be purchased online and downloaded for use immediately. Once purchased, there are no ongoing costs, and they can be used by unlimited users within the same Company or entity. In order to use our Tools, you must have a current version of Excel (Office XP or greater). We also offer two complete Bundles (standard for smaller companies, advanced bundle for companies with more grants), which includes key tools to develop your assumptions, value options and calculate compensation expense in accordance with ASC 718. We have bundled these tools together and are offering them at a discounted price. For private companies, we have a package to meet your specific needs and to provide additional assistance. Please see our Private Company page for more details. For our customers who have ESPP plans, we also provide a bundle that includes the software to value and track your ESPP grants. Please see the ESPP Software page for more information.
IMPORTANT: After completing the PayPal payment, click the 'Return to Merchant' button to start the download. Product Details We offer Excel-based models to generate valuations for stock option grants. The models take assumptions as inputs and with the push of a button, produce a valuation based on those assumptions using industry-standard methods. The model formulas are protected from tampering to prevent accidental deletion or modification. We offer two models to determine option valuations, a modified Black-Scholes-Merton model and a Binomial Lattice model. Either model may be used to value employee stock options. The modified Black-Scholes-Merton model is best suited for companies seeking a simple, easy-to-use model. The Binomial model is more complex but generally produces a more precise valuation. Please see the Model Comparison sheet for more details. We also offer theVolatility Tool to compute the volatility input to the models using historical stock data and the Forfeiture & Expected Life Tool to compute the forfeiture rate and expected life using historical stock option data. Finally, to help you compute the expense and manage your option grants, we provide the Management tool. These tools can be purchased together along with the Black-Scholes model for an attractive price in the Bundle (see above). We also provide consulting services to assist with stock option implementation. This includes helping companies develop their assumptions for expected volatility, term and forfeitures, and assisting in the determination of the expense to be recorded by period. Please contact us at consulting@procognis.com for details. Download our free whitepaper for more information on stock options and how our tools can be used by your company. Please feel free to contact us if you any questions about our products at info@procognis.com. |
"Options that were previously only mentioned in the footnotes must now be expensed. This change will effect every company with options." |
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