What it is
Stock compensation expense depends on grant-date fair value, the vesting pattern and the forfeiture policy. Graded vesting with each tranche expensed over its own service period front-loads cost compared with straight-line.
The workbook takes units, fair value and up to four annual tranches per award, applies the entity’s forfeiture policy and attribution method, and shows expense by year since grant.
When to use it
- Companies with option and restricted stock plans.
- Auditing equity compensation expense.
- Modeling expense for budgets.
What’s inside
- Awards tab with tranches, forfeiture rate and expense by year
- By year tab with cumulative and unrecognized cost
- Independent check of total cost
- Legend tab
Standard cited
This template follows ASC 718-10-35-3. 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
What forfeiture policies are modeled?
The entity-wide election to estimate forfeitures or account for them when they occur (718-10-35-3). True-ups to actual are not modeled.
Does it handle performance or market conditions?
No. It handles service conditions only.
Related templates
- Equity and Stock-Based Compensation Audit Program
- Disclosure Checklist: Stock Compensation (ASC 718)
- Stock Option and Warrant Activity Rollforward
- Equity Rollforward Template (Corporation and LLC)
Last updated 11/06/2026. All free templates.