Scope sheet
finbryn.com
Technical accounting
Stock compensation accounting under ASC 718 and IFRS 2
Finbryn provides stock compensation accounting under ASC 718 and IFRS 2 for venture-backed and PE-backed companies: fair value and expense schedules, journal entries and draft footnotes from your valuation inputs. Checked 2026-10-16: ASU 2024-01 sets an ASC 718 scope test for profits interests, effective for private companies from annual periods beginning after December 15, 2025.
What is included
- Grant ledger reconciled to the cap table and board approvals
- Grant-date fair value and expense schedule by award and period
- Forfeiture, modification and cancellation treatment documented
- Journal entries to compensation expense and equity
- Draft stock compensation footnote and award roll-forward
The process
- 1.
Collect the award documents
Plan, grant agreements, approvals, cap table and every valuation report with its valuation date.
- 2.
Reconcile the grant ledger
Match each grant to board approval and the cap table, and list exceptions before any expense is calculated.
- 3.
Test the scope and classification
Decide for each award type whether it is inside ASC 718 and whether it is equity- or liability-classified.
- 4.
Build the expense schedule
Grant-date fair value from the inputs you supply, vesting, forfeiture policy and modifications, by award and period.
- 5.
Draft entries and disclosures
Journal entries, roll-forward and footnote text for your controller to edit and adopt.
Software
Carta, Pulley, Microsoft Excel, QuickBooks Online
Finbryn is a brand of Northlane Solutions Inc., a Delaware corporation.
Reviewed October 2026