Financial Reporting

Audit-Ready ASC 718 Stock-Based Compensation Reporting

Generate ASC 718 stock compensation reports your auditors will accept the first time. Qapita supports Black-Scholes, Binomial, and Monte Carlo valuation models out of the box, with expert guidance built in for modifications, forfeitures, and market-based performance conditions.

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Benefits of Qapita's Financial Reporting Software

Defend your numbers, not just report them

Auditors don't push back on the report. They push back on the assumptions. Qapita shows the full reasoning: why Monte Carlo over Black-Scholes, how a modification was treated, what changed and why. When your auditor asks "walk me through this," you're ready.

One data source, zero reconciliation

Cap table, 409A valuations, and ASC 718 reporting live in one platform. Not three tools you're stitching together. Grant data flows straight into expensing. No re-entry. No version drift.

Audit-ready from day one

Once a period closes, it's locked. True-ups and backdated changes carry forward automatically. Prior periods stay untouched. Your audit trail never resets.

Everything your ASC 718 Reporting process needs

Audit-Ready ASC 718 and IFRS 2 Reports

Every company is different. Your valuation should reflect that.

Qapita automates ASC 718 stock-based compensation expense calculations across plans, grants, and reporting periods, all while maintaining the detail, documentation, and controls auditors expect. Whether you follow ASC 718 stock compensation or IFRS 2, you get clean, exportable reports and full transparency into amortization schedules and assumptions.

Support for Black-Scholes, Binomial & Monte Carlo

Reviewed. Verified. Signed by experts.

We provide full support for fair value determination using Black-Scholes, Lattice/Binomial, and Monte Carlo simulations. Whether you're pricing vanilla options or complex PSUs, our team will help you select and justify the appropriate model and explain how it flows through to your stock based compensation ASC reporting.

Guidance on Modifications, Repricing & More

Knowledge and experience to help you navigate complexity

Wondering how to treat option repricing? Replacement grants? Market-based performance conditions? Our expensing specialists help you make the right ASC 718 compensation and stock compensation accounting call, and explain the implications clearly. We'll work with your auditors and help you prepare disclosures when things get nuanced.

Flexible Amortization and Cost Center Allocation

Fits your accounting policy, not the other way around

Support straight-line, graded, and front-loaded methods. Track vesting changes, terminations, and forfeitures dynamically. Allocate expense by cost centre, team, or geography, with mobility tracking for international employees and inter-entity transfers.

Seamless Migration

Bring your history. Leave the headaches.

Moving your ASC 718 reporting to Qapita doesn't mean starting over. Upload your life-to-date expense data so everything you've already booked is captured, locked, and preserved. Qapita ensures reporting continuity by protecting prior periods and carrying forward any true-ups or adjustments into future cycles. No duplicate entries. No audit gaps. Just clean, trusted expense schedules from day one.

Audit-ready reports at your fingertips!

Stay confident with accurate reporting that scales with you.

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Words from our valued customers

Reporting Obligations simplified.

We can easily download various reports, including summary reports. This has significantly streamlined the reporting process, making it super easy for us to generate the necessary reports for all reporting obligations.

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Enterprise (>1000 emp.)

Impressive Reporting Capabilities

Qapita's reporting capabilities are very useful. The Financial Reporting feature provides us with detailed and accurate reports that are essential for our business decisions.

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Efficient Equity Reporting

Qapita's Financial Reporting capabilities are excellent. It provides us with detailed reports that are easy to download and share with stakeholders.

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Enterprise (>1000 emp.)

Qapita is good and evolving

I really liked the feature which has been recently introduced for bifurcating the single pool balance to different plans.

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Senior Manager - People & Culture Mid-Market(51-1000 emp.)

How it works

Stop scrambling before audits. Start reporting on autopilot

Grant data, valuation assumptions, expense schedules the work that used to eat your close now runs step by step, start to finish.

Fair value is determined at grant

A fair market value is set on the grant date using option term, strike price, risk-free rate, current share value, and expected volatility.

Expense is calculated

Instead of one lump cost, ASC 718 stock-based compensation expense is spread over the vesting period straight-line or accelerated, based on your policy.

Methods and assumptions are disclosed

Every valuation model uses either Black-Scholes or Binomial, or Monte Carlo and comes with the assumptions behind it, like volatility, dividend yield, risk-free rate, expected life, and input sources.

Financial statement is reported

You get total ASC 718 stock compensation expense for the period and its impact on your financials, including EPS where applicable

FAQs

Frequently asked questions

What is ASC 718 reporting?

ASC 718 is the US GAAP standard for accounting for stock-based compensation. It requires equity awards to be estimated, recognized, and disclosed as real compensation costs, not just mentioned in footnotes.

What is the difference between ASC 718 and IFRS 2?

ASC 718 applies under US GAAP. IFRS 2 is the equivalent standard for share-based payments under International Financial Reporting Standards. Qapita supports both.

How often does ASC 718 reporting need to be updated?

Most companies update ASC 718 stock compensation reports at least annually, and quarterly once audit or investor reporting expectations increase.

How does Qapita handle option repricing and grant modifications?

Modifications like repricing or grant replacements complicate ASC 718 accounting. Qapita's specialists guide you through the treatment, including market-based performance conditions, and help prepare accurate disclosures.

How does Qapita differ from handling ASC 718 reporting in a spreadsheet or through an accounting firm?

Spreadsheets carry real risk, a missed formula or outdated assumption can under- or over-report ASC 718 stock-based compensation expense, and errors often surface only at audit. An outside accounting firm can catch mistakes too, but you're paying per engagement and waiting on turnaround. Qapita combines the speed of software with an in-house expensing team reviewing the nuances, so you get accuracy without the per-engagement cost or delay.

How long does it take to get set up and produce a first report?

Most companies are set up and have their first ASC 718 report within 2 weeks, depending on the state and completeness of your existing grant and cap table data.

What happens to our historical ASC 718 data when we move to Qapita?

Switching your ASC 718 stock-based compensation reporting to Qapita doesn't mean losing history. Qapita migrates your life-to-date expense records, protects prior periods, and carries forward true-ups, no duplicate entries.

What does the audit process look like when using Qapita?

Qapita's reports are audit-ready by design, backed by clear assumptions, valuation logic, and supporting schedules. The team can also liaise directly with your auditors to answer questions.

Does Qapita handle ASC 718 reporting for companies with employees in multiple countries?

Yes, Qapita supports ASC 718 stock compensation reporting for multi-country teams, handling jurisdiction-specific treatment as part of the same platform your cap table and valuations run on.

What happens when FASB updates ASC 718 guidance?

Qapita proactively updates its methodology when FASB issues new ASC 718 guidance, so your reporting stays compliant without you having to track every standard change yourself.

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