What it is
Equity awards are measured at grant-date fair value and recognized as compensation cost over the service period. This workbook keeps a register of grants, spreads cost by month on a straight-line basis, shows unrecognized cost and rolls option shares forward by year.
Pick a forfeiture policy: estimate forfeitures with an annual rate, or account for them as they occur. The register covers options, restricted stock units and restricted stock, and the option tab ties the roll-forward back to the register.
When to use it
- At year end and each quarter to compute stock compensation expense and unrecognized cost.
- When preparing the option activity table for the notes to the financial statements.
- During the audit, to support the journal entry and the equity roll-forward.
What’s inside
- Parameters tab with first year shown, forfeiture policy and estimated forfeiture rate
- Grants register for 20 awards with grant-date fair value, service period and total cost
- Expense by year for six years and unrecognized cost at the end of the last year shown
- Option activity roll-forward: beginning, granted, exercised, forfeited, expired, ending
- Tie-out of option shares outstanding to the register
Standard cited
This template follows ASC 718. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
When is the fair value measured?
At the grant date, once. Compensation cost for an equity-classified award uses that value over the service period and does not change when the share price moves.
How are forfeitures handled?
An entity elects a policy. It either estimates the number of awards expected to vest, or recognizes forfeitures as they occur. The workbook supports both through the forfeiture policy cell.
Does it handle graded vesting or performance conditions?
No. It spreads cost on a straight-line basis for service conditions. Graded vesting, performance and market conditions and modifications need their own measurement, with the support attached.
What does the tie-out compare?
The year 4 ending option balance against the register: options granted less shares forfeited, exercised and expired. It reads OK only when the roll-forward covers all history in the register.
Related templates
- Equity Rollforward Template (Corporation and LLC)
- Disclosure Checklist: Equity (ASC 505)
- Audit Program: Debt and Equity
- Disclosure Checklist: Stock Compensation (ASC 718)
Last updated 11/05/2026. All free templates.