What it is
Share-based payment disclosures describe the plans, the activity in the period, how awards were valued and what they cost. This checklist covers plan terms and policy, the option and unit rollforwards, valuation inputs for a company without a public share price, expense and unrecognized cost, and liability-classified awards.
It is a prompt list in our own words, not the Codification. A scaling line records the entity’s status and the practical expedients used, because nonpublic entities disclose less and may use certain expedients for expected term and for liability awards.
When to use it
- When drafting the stock compensation note for a private company.
- After a grant, a modification or a valuation update.
- During the audit or review of the notes.
What’s inside
- Plan description and policy: fair value method, forfeitures, attribution, classification
- Rollforward of options and nonvested awards with weighted-average amounts
- Valuation inputs and the basis for common stock value and volatility
- Expense, unrecognized cost, tax benefit and liability awards
- Review points tying the note to the rollforward and earnings per share
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
How does a private company support volatility?
With a peer group of comparable public companies or another stated basis, because it has no share price history of its own. The note names the basis. The checklist prompts for it.
What is unrecognized compensation cost?
Cost of nonvested awards not yet expensed. The note gives the total and the weighted-average period over which it will be recognized. The stock compensation rollforward workbook computes both.
Do nonemployee awards need separate disclosure?
They are identified and their expense described where significant. The checklist asks whether nonemployee awards exist and how they are presented.
Related templates
- Stock Compensation Roll-Forward Workbook (ASC 718)
- Disclosure Checklist: Equity (ASC 505)
- GAAP Disclosure Checklist (Private Company, Short Form)
- Equity Rollforward Template (Corporation and LLC)
Last updated 11/05/2026. All free templates.