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Carta LLC
a year ago

Introducing support for expensing profits interests with non-market performance conditions and a new report ledger

What's new?

ASC 718 Financial Reporting now supports expensing profits interest units with vesting schedules that have non-market performance conditions. Additionally, all historically generated reports are now saved in a report ledger.

What's important or valuable about this change?

  • Increase efficiency and accuracy of expensing profits interests with non-market performance conditions. In addition to expensing profits interests with time-based and event-based performance conditions, Admins can now also expense interests with non-market performance conditions. To help comply with  FASB guidance, admins can input into Carta the estimated recognition dates, estimated payout percentages, and recognition confidence in order to calculate expenses for profit interests with non-market performance conditions.
  • Breeze through audits with a new report ledger. You can now maintain a complete record of every draft and finalized ASC 718 expense and disclosure report in a report ledger in Carta, allowing you to streamline annual audits. See and download any report whenever you need to.

What do I need to do?

See this release note for more information on how to pull ASC 718 expense and disclosure reports from Carta.

  1. When pulling an expense and disclosure report for profits interests with non-market performance conditions, you will be prompted to edit the estimated recognition date, estimated payout percentage, and recognition confidence for each condition.

  1. See and download every draft and finalized expense and disclosure report from the report ledger.

How do I learn more or get help?

If you need help with your Carta-generated financial reports,  contact our dedicated ASC 718 support team.

If you’re interested in automating ASC 718 financial reporting with Carta, please reach out to your CSM or request a demo from the Financial reporting tab inside Carta. ASC 718 financial reporting is available as an add-on to your current Carta subscription.

Avatar of authorZeba Naqvi