White Papers
The Stock Option Valuation Game: Like Whac-A-Mole for Equity Compensation Reporting … Just a Lot Less Fun
The grace period for IRS Section 409A is coming to an end on December 31, 2008 and ongoing FAS 123R and stock option backdating issues must be kept under control. Prior to the new stock option expensing requirements under FAS 123R, the new deferred compensation plan rules under Sec. 409A, and the stock option backdating scandals of 2006, relatively little attention was paid to how a company determined the exercise price of employee stock options. But now, if companies do not pay attention, auditors, acquirers, and regulators will discover these issues. That discovery is certain to magnify problems that could have been fixed. The result will be financial and tax issues for both the company and its employees. Read what the experts have to say about how to avoid an administrative nightmare, inadvertent errors, penalty taxes, and greater scrutiny, -- all issues that could increase audit time and reduce the value of your company.
Valuing Options While Running the Compliance Gauntlet
In the software industry newsletter,
Softletter, Edward E. Pratesi, CPA and Managing Director at Brentmore Advisors, LLC, addresses the challenging compliance issues that privately-held companies face when granting stock options or other equity-based compensation and trying to determine the fair market value of the underlying common stock. This white paper is aimed at CFOs or stock plan administrators who have minimal valuation expertise, but need to understand the complex interplay between FAS 123R and Sec. 409A and the acceptable methods under each.
Lessons Learned - A Recap of Stock Option Reporting Updates
This article by Gary D. Levine, President and CEO of Two Step Software, takes a look at what we have learned from regulators and practitioners regarding changes and updates related to internal controls, Sec. 409A, and FAS 123R reporting and the interplay between the FASB, the AICPA, the IRS, and the SEC.
Restricted Stock v. Stock Options: What’s the Difference? Which is better?
Bruce Brumberg, Editor-in-Chief of myStockOptions.com, has delivered this presentation to many diverse audiences this year as FAS 123R accounting has refocused many companies on stock option alternatives. It describes the key differences between restricted stock and stock options and explains some of the trade-offs, tax alternatives, risks and accounting issues.
A Five Step Framework to Create Auditable Stock Option Records and Comply with
FAS 123R
This article by Gary D. Levine, President and CEO of Two Step
Software, outlines five easy steps that financial executives can take to impress auditors and ensure FAS 123R compliance.
Thumbs Up or Down for Black-Scholes?
This article from FAS123 Solutions examines whether it makes sense to stay with Black-Scholes or move to a different valuation model and whether this more traditional model tends to overstate employee stock option valuations.
The Hidden Interdependencies of Sec. 409A and FAS 123R
This white paper by Brock Benson of iComp, LLC discussed how these regulations are actually linked based on the common requirement to develop public company peer groups and the benefits of a consistent approach for valuation and volatility estimation.
Valuation of Stock for Options and SARs
Read this article from Preston Gates & Ellis LLP regarding Section 409A of the Internal Revenue Code
and how it imposes burdensome tax consequences on recipients of certain types of deferred compensation.
Sarbanes-Oxley for Private Companies
Read this compliance guide from Foley & Lardner LLP that discusses a range of SOX requirements that are being adopted in the private sector.
Stockholder Record Tracking
Read how to limit internal risk and provide clients with a
foundation for good corporate governance.
The Virtual 3-Ring Binder
Read this ILTA white paper on the benefits of implementing an
online minute book at law firms and in corporate legal departments.
Corporate Minute Books
There's a whole new way to look at corporate minute books.