FAS123r STOCK OPTION TOOLS AND MODELS

Under current FASB accounting guidance, companies are now required to value their employee stock options. To meet this need, we offer tools and models to help companies with the valuation process.

FAS No. 123r, “Share Based Payments” which amends FAS No. 123 “Accounting for Stock-Based Compensation” is effective for fiscal years beginning after June 15, 2005, and requires the expensing of stock options.

Previously, companies had a choice between expensing the options or disclosing the valuation. As few companies chose the expense method, many companies will now be recording stock option expense for the first time. Download our free whitepaper for more information on how this new standard may impact your company.

To assist you with the implementation of FAS123r, we offer the following Excel-based products:

Valuation Models
Black-Scholes-Merton Model $169
Binomial-Lattice Model $749
ESPP Black-Scholes Valuation Model $299
Tools to Develop Assumptions
Volatility Tool $349
Forfeiture & Expected Life Tool $299
Tools to Manage Granted Options and Calculate Compensation Expense
FAS123r Management Tool $299

IMPORTANT: After completing the PayPal payment, click the 'Return to Merchant' button to start the download.

All of our FAS123r products can be purchased online and downloaded for use immediately. Once purchased, there are no ongoing costs, and they can be used by unlimited users within the same Company or entity. In order to use our Tools, you must have a current version of Excel (Office XP or greater).

We also offer a complete FAS123r Bundle, which includes key tools to develop your assumptions, value options and calculate compensation expense in accordance with FAS123r. We have bundled these tools together and are offering them at a discounted price. For private companies, we have a package to meet your specific needs and to provide additional assistance. Please see our Private Company FAS123r page for more details.

For our customers who have ESPP plans, we also provide a bundle that includes the software to value and track your ESPP grants. Please see the ESPP Software page for more information.

FAS123r Bundle
Black-Scholes Merton Model $169 Volatility Tool $349 Forfeiture & Expected Life Tool $299 FAS123r Management Tool $299 Total $1116 Discount ($217) Bundled Price $899

IMPORTANT: After completing the PayPal payment, click the 'Return to Merchant' button to start the download.

Product Details

We offer Excel-based models to generate valuations for stock option grants. The models take assumptions as inputs and with the push of a button, produce a valuation based on those assumptions using industry-standard methods. The model formulas are protected from tampering to prevent accidental deletion or modification.

We offer two models to determine option valuations, a modified Black-Scholes-Merton model and a Binomial Lattice model. Either model may be used to value employee stock options. The modified Black-Scholes-Merton model is best suited for companies seeking a simple, easy-to-use model. The Binomial model is more complex but generally produces a more precise valuation. Please see the Model Comparison sheet for more details.

We also offer theVolatility Tool to compute the volatility input to the models using historical stock data and the Forfeiture & Expected Life Tool to compute the forfeiture rate and expected life using historical stock option data. Finally, to help you compute the expense and manage your option grants, we provide the FAS123r Management tool. These tools can be purchased together along with the Black-Scholes model for an attractive price in the FAS123r Bundle (see above).

We also provide consulting services to assist with FAS123r implementation. This includes helping companies develop their assumptions for expected volatility, term and forfeitures, and assisting in the determination of the expense to be recorded by period. Please contact us at consulting@procognis.com for details.

Download our free whitepaper for more information on FAS123r and how our tools can be used by your company. Please feel free to contact us if you any questions about our products at info@procognis.com.