ASC 718 Stock Compensation: How the 409A Drives the Expense

ASC 718 stock compensation is the GAAP standard that turns your 409A common stock fair market value into a grant-date expense on the P&L. The same FMV drives your strike price, your Black-Scholes expense, and your R&D credit wage base, so they should reconcile to one source. Indinero’s CPA team runs the 409A and the ASC 718 accounting together, from $750/mo, since 2009.