ASC 718 Expense, Straight From Your Grants
Stock-comp accounting is where equity and the ledger collide. Fintra measures ASC 718 expense from your actual grants, recognizes it over vesting, and posts the journal entries.
What ASC 718 expensing covers
Fintra calculates the fair-value stock-compensation expense for each grant under ASC 718, recognizes it over the vesting period, handles forfeitures, and posts the journal entries to your general ledger. Because it reads the same grants and valuations that live on your cap table, the expense ties out to your equity - no separate schedule to reconcile.
- Grant-level fair-value expense measurement
- Recognition over the vesting period
- Forfeiture handling and true-ups
- Journal entries posted to the general ledger
How the expense is built
Straight-line recognition
Period expense = (Grant fair value × (1 − est. forfeiture)) ÷ vesting periods
Each grant’s total fair value is recognized ratably over its vesting period, adjusted for expected forfeitures and trued up as actual forfeitures occur.
- Fair value from the grant’s valuation basis
- Recognized straight-line (or per your policy) across vesting
- Trued up when forfeitures differ from estimate
Audit-ready by construction
Between equity and the ledger
- Reads grants and valuations from the cap table
- Posts entries into the general ledger and close
- Aligns with total-compensation reporting
Frequently asked questions
What is ASC 718?
ASC 718 is the US GAAP standard for accounting for stock-based compensation. It requires companies to measure the fair value of equity awards and recognize that value as expense over the vesting period. Fintra automates that measurement, recognition, and the journal entries.
Does Fintra post the journal entries?
Yes - it recognizes the expense over vesting and posts the entries to the general ledger, so stock-comp expense hits your books automatically. Because it reads the cap table, the expense ties out to your actual grants.
How are forfeitures handled?
Expense can be recognized net of an estimated forfeiture rate and trued up as actual forfeitures occur, so the cumulative expense reflects the awards that actually vest - consistent with ASC 718.
Will this satisfy my auditor?
It produces the grant-by-grant expense schedule, the fair-value basis, and the journal entries auditors ask for, all reconciling to the cap table and the ledger. That’s far more defensible than a hand-built spreadsheet.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Automate stock-comp accounting
Start free, no card required. Compute ASC 718 expense and post journal entries from your grants.
Talk to us