Financial Reporting is making an improvement to the way we pull in cap table data, achieving data consistency with the cap table products for vesting schedule tranche values.

What's new?

Previously, Financial Reporting used our own First-In First-Out (FIFO) allocation method to assign exercised quantities to ISO/NSO security type tranches. This method did not always match the cap table, as the logic slightly differed. In order to provide consistent data between cap table products, such as equity reporting, equity awards ledger, equity award details, and Financial Reporting, the Securities team created API services, specifically Vesting and Options for award and tranche level quantities. With Financial Reporting’s integration of the Vesting and Options API service, the tranche values displayed in Financial Reporting reports will be improved to match other Carta products, achieving data consistency. 

Who is this available for?

All Financial Reporting customers will benefit from this new method Financial Reporting will be using to achieve data consistency with cap table products and equity reporting. More specifically, companies with ISO/NSO security types will have matching tranche quantity allocations with their cap table!

Main Value Proposition

Fully rely on Financial Reporting for your equity roll forwards! With a few clicks, Financial Reporting will provide accurate equity roll forwards and stock-based compensation expense for your financial statements and audits. Carta’s products talk to one another, which means you can easily rely on Financial Reporting to have accurate tranche quantities that match our other products.

How do I use it

No action required on the customer side. Customers will just continue to generate their financial reporting periods and the reports will correct themselves without disrupting the opening and closing balance of prior reporting periods. 

Anything else I need to know?

If you have any questions or want to talk to an expert about this new change, reach out to 718@carta.com