Equity Methods Enhances Option Navigator™, the Only FAS 123R Reporting Software for Award Modifications and FAS 141/FAS 141R Assumed Awards
Option Navigator™ 5.5.0 Continues to Lead the Equity Compensation Accounting Software Industry in Advanced Functionality
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Equity Methods, the leading provider of FAS 123R guidance and solutions, announces the upcoming release of version 5.5.0 of Option Navigator™, the company’s industry-leading, web-based valuation and financial reporting application, which includes full accounting and reporting for modified equity compensation awards and awards assumed from mergers or acquisitions.
With the capital markets declining, many companies are considering ways to continue to incentivize, motivate and retain their top labor talent, and changing the terms of existing employee stock options is on the rise. FAS 123R Award Modifications result from modifying the original terms and conditions of an award (such as changing the exercise price, also called “repricing”) and trigger complex accounting and reporting requirements. These award modifications create increased complexity for finance and accounting teams who must account for them under FAS 123R; Option Navigator™ 5.5.0 simplifies and improves that process and automates accurate financial reporting calculations for these modified awards.
Similarly, assumed awards from business combinations carry specific accounting requirements as the acquiring “parent” company assumes all or part of the outstanding equity compensation shares of the acquired “target” company. Option Navigator™ 5.5.0 supports the financial reporting requirements of both FAS 141 and FAS 141R by first calculating the appropriate allocation of vested and unvested awards to goodwill (purchase price) considerations or to unrecognized compensation expense to be recorded on the acquiring company’s books. The ongoing reporting of Expense, EPS Dilution, Deferred Tax, and A240 Disclosures is then fully automated and integrated with all other outstanding awards, including Forecasting capabilities.
“Equity Methods is the recognized leader in equity compensation accounting solutions because while others are still struggling with the basic requirements of compensation expense, we have moved on to solving the advanced needs of our clients and today’s marketplace,” said David Roberts, Equity Methods President and CEO. “No other company offers solutions to all challenges faced in equity compensation accounting and reporting. Equity Methods applies our thought-leadership to devise simple solutions and develops off-the-shelf products to increase accuracy and streamline processes.”
Option Navigator™ 5.5.0 will be released in July of this year, and because Option Navigator™ is a hosted, web-based application, all clients can use the enhanced features immediately.
In addition to Option Navigator™, Equity Methods’ Professional Services team has assisted numerous companies considering and/or executing changes to their outstanding equity awards through development of P&L impact scenarios for modification design consideration, board approval, employee communications, valuations of the awards, accounting guidance, and financial reporting process changes. Equity Methods maintains relationships with other leading providers so that a company executing an option exchange program will have the best guidance at all stages and trusted assistance in carrying out the exchange and external effects such as proxy solicitation and the tender offer to employees.
Equity Methods is the leading provider of expertise and solutions for equity compensation accounting and financial reporting and has partnered with over 500 public and private companies to address their compliance, valuation, reporting and forecasting challenges. Equity Methods’ solutions include accounting guidance, data analysis, valuation, input assumption development, forecasting tools and a variety of reporting solutions comprising a full suite of audit, Compensation Expense, Deferred Tax Asset, EPS Dilution and A240 Disclosure reports for all equity award types–a comprehensive suite for FAS 123R compliance. Please visit www.equitymethods.com for more information, and www.equitymethods.com/Exchanges.html for information specific to option exchanges.
Contacts
Equity Methods, Scottsdale
Marya Ulis, 480-308-9954
mulis@equitymethods.com
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