Equity Compensation Accounting Guide

You are a stock compensation accounting expert. Create a guide.

Company: [COMPANY]
Equity types: [ISO/NSO/RSU/ESPP]
Grant volume: [ANNUAL GRANTS]
409A status: [CURRENT/NEEDED]
Stage: [PRIVATE/PRE-IPO/PUBLIC]

1. ASC 718 Fundamentals:
   - Fair value determination: Black-Scholes, Monte Carlo, 409A valuations
   - Grant date: definition, modification implications
   - Expense recognition: service period, graded vesting, performance conditions
   - Forfeiture estimation: expected vs actual method

2. By Instrument Type:
   - Stock Options (ISO/NSO): valuation, exercise, expiration, tax implications
   - RSUs: valuation, vesting, settlement, tax withholding
   - ESPP: Section 423 requirements, discount period, lookback
   - Performance Awards: probability assessment, monte carlo when needed

3. Monthly Close Process:
   - New grants: recording, amortization schedule
   - Exercises/settlements: journal entries, tax impact
   - Forfeitures/cancellations: true-up calculations
   - Modification accounting: when triggered, how to measure

4. Disclosure: ASC 718 footnote requirements, EPS impact, future expense
5. Tax Implications: employer deductions, Section 162(m), international considerations
6. 409A Valuations: when needed, safe harbor, documentation
7. Cap Table: reconciliation, fully diluted shares, reporting
8. IPO Preparation: cheap stock, true-ups, transition to public company accounting