Equity Methods Enhances Equity Compensation Accounting Software

July 7, 2009 (PLANSPONSOR.com) - Equity Methods, provider of FAS 123R guidance and solutions, announced the release of version 5.5.0 of Option Navigator, the company's Web-based valuation and financial reporting application.

The new version includes full accounting and reporting for modified equity compensation awards and awards assumed in a merger or acquisition.

In a press release, Equity Methods explains that FAS 123R Award Modifications result from modifying the original terms and conditions of an award (such as changing the exercise price, also called “repricing”) and trigger complex accounting and reporting requirements. Option Navigator 5.5.0 simplifies and improves that process and automates accurate financial reporting calculations for these modified awards, the company said.

Similarly, Equity Methods explained, assumed awards from business combinations carry specific accounting requirements as the acquiring “parent” company assumes all or part of the outstanding equity compensation shares of the acquired “target” company. The enhanced software supports the financial reporting requirements of both FAS 141 and FAS 141R by first calculating the appropriate allocation of vested and unvested awards to goodwill (purchase price) considerations or to unrecognized compensation expense to be recorded on the acquiring company’s books. The ongoing reporting of Expense, EPS Dilution, Deferred Tax, and ADisclosures is then automated and integrated with all other outstanding awards, including Forecasting abilities, the announcement said.

More information is at www.equitymethods.com .

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