Three Best Practices for ASC 718 Reporting
Jet Global
JUNE 15, 2021
During the dot-com boom, the practice of issuing equity shares as a portion of employee compensation gained tremendous popularity. Unfortunately, at the time that so many tech startups were springing up in the early 2000s, accounting practices related to the expensing of equity-based compensation were not well standardized. Many emerging companies, in their zeal to appear as profitable as possible, chose not to recognize such expenses at the time they were incurred.
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