Expert Financial Reporting & Reconcilation Service

EASi Experts Get FAS Reporting Right

Advanced planning
Multi-level expert review
Thorough analysis
Detailed reconciliation
Clear audit trail

EASi does this and more so you can be confident that the numbers you book are right.

Pre-close Review and Reconciliation

From quarter-to-quarter, changes in things like market price, grants awarded, tax rate, employee mobility or weighted average stock price can mean the numbers you reported last quarter won't resemble what your reports say this quarter. And it can take you hours to figure out why.

Let EASi experts do the analysis and reconciliation for you.

Expense

We review the output from our system, addressing the expensing piece of FAS. If we don't see numbers we expect based on the prior quarter, we identify what's driving the change. You get a review and reconciliation report that lets you book numbers with confidence.

We look at things like Fair Value, Amortization, Vesting True-ups, Forfiture Rate changes as well as changes to Expected Vest Factor for Performance Awards.

EASi Expert Financial Reporting & Reconciliation Service - Sample Report: Expense

Compensation expensed for stock options booked at the end of fiscal quarter ending March 30, 2009 was $780,388.88. For fiscal quarter ending June 30, 2009, we are reporting $843,031.86 booked compensation expense.

	Q2 2009 Book	Q3 2009 Book
Option Current Expense	$970,181.94	$847,776.56
Option Forfeiture	$189,793.06	$4,744.70
Option Total Expense	$780,388.88	$843.031.86
Net Difference	$62,642.98

Reconciliation Rationale

The difference between Q2 and Q3 booked expense for options is accounted for in three main areas: the grants that are expensing each period, terminations that occur in Q3, and the true-up for shares that vest in Q3.

In Q2, there were 130 grants amortizing expense. Of those 130 grants, 48 grants show zero unamortized expense, and therefore are not expensing in Q3. One of these grants has zero un- amortized expense due to being fully expensed in Q2, resulting in expense that will not be carried forward to Q3. The other 47 grants with zero unamortized expense are due to actual forfeitures in Q2, resulting in negative expense that will not carry forward into Q3. In Q3, the 82 remaining grants are expensing, and no new grants are issued in the period. For grants issued mid-period in Q2, the total days of amortization for these awards will be greater in Q3. These grants will show more expense in Q3 than they did in Q2.

At the time that a termination occurs, the current expense will be lower in Q3 than it was in Q2 because the grants are no longer expensing for the entire period. A forfeiture credit is calculated to return any expense taken in prior periods for shares that are unvested at the time that they are forfeited.

During Q3, many of the grants expensing have a vesting tranche. An estimated forfeiture rate is being applied to unvested shares as they amortize prior to their vesting. Therefore, a true-up in Q3 for the reduction of expense in prior periods for the shares vesting in Q3 occurs. This complies with the FAS 123R requirement to expense all shares that are vested at the time that they vest. Finally, Q2 is only 90 days long, while Q3 is 91 days long. The change in the number of days in each period will account for a difference in the expense for each period.

Roll forward to account for difference - Options

Q2 2009 Current Expense			$970,181.94
Q2 2009 Forfeiture Credit			($189,793.06)
2009 Total Expense			$780,388.88
	Grants amortizing in Q2	130
	Grants amortizing in Q2 with zero unamortized expense (current expense Q2)	(48)
	New grants issued in Q3	0
	Grants amortizing in Q3	82
Q2 grants with zero unamortized expense due to expensing in full will not expense in Q3			($3,865.25)
Q2 grants with zero unamortized expense due to actual forfeitures in Q2 resulting in a negative expense in Q2 that will not exist in Q3			$61,393.85
Additional expense in Q3 for grants issued in Q2 mid-period resulting in less days of expense in Q2 than in Q3			$582.52
New shares issued in the period			$0.00
Actual forfeiture credit Q3 (expense reversed for unvested shares that forfeit due to termination)			($4,744.70)
Out of period forfeitures (forfeiture date prior to current period and entered into database during current period)			NA
Acceleration of expense due to termination or vesting			NA
Change in estimated forfeiture percentage rate			NA
	Q2 estimated forfeiture rate
	Q3 estimated forfeiture rate
Vesting true-up in period			$1,171.72
Adjustment due to Expected Vest Factor change			NA
	Q2 2009 EVF
	Q3 2009 EVF
Miscellaneous true-up (Difference in number of days in period, graded amortization)			$8,104.84
Q3 2009 Total Expense			$843,031.86

The Turn-key Report Delivery and Reconciliation Process

EASi provides turn-key report delivery to help you conquer the hassles of FAS 123R/ASC 718 compliance. You set the timeline and specify the reporting parameters. We confirm your FAS parameters. You ensure data is accurate and complete. We perform a pre-close test run and ensure data is correctly loaded if it is coming from a platform outside of EASi. If necessary, we work with you to correct outstanding data issues before we run your reports.

EASi provides provides unparalleled support and project management to make closing easier.

Customer Does It	EASi Does It
Set the timetable	Identify any data loading issues*
Specify reporting parameters	Perform pre-close test run
Address any data loading issues	Confirm FAS parameters
Ensure data is acccurate	Run reports
Ensure data is updated	Revise and reconcile report data
	Explain changes between reporting periods

*If data is coming from a system outside of EASi

Comprehensive Financial Reporting

EASi's complete set of FAS 123R/ACS 718 reports includes Fair Value and Compensation Expense as well as Common Equivalents, Deferred Tax and Journal Entries and A240 footnote disclosure information covering what's needed for your 10K filing. We deliver SEC Executive Compensation tables and basic and diluted EPS including deferred tax for assumed share repurchases.

Future-Proof Your Equity Compensation Management and Reporting

Used by more than 500 companies worldwide, EASi's software has proven to be the most comprehensive and cost-effective FAS 123R solution available today. EASi is designed to evolve quickly. We add new functionality at least three times a year while other companies only make upgrades once a year. That's why EASi continues to lead the industry with second-to-none solutions in areas including FAS 123R, IFRS 2, Performance Awards and WorkStream process automation.