Complex Accounting Regulations Trouble Private Technology Companies
Company News | October 28, 2008
"Stock options remain a fundamental employee recruitment and retention tool among technology companies, despite their many challenges," said Jim Anderson, president of SVB Analytics. "Our clients struggle to determine how to apply 'fair value' to expense options and comply with the lengthy and complex FASB reporting rule. We're trying to ease this pain through education and a comprehensive software solution."
To help private companies that issue stock options understand and comply with the regulation, SVB Analytics is offering online seminars featuring Sean Scrol, the founder of Valtrinsic, a leading actuarial firm in Chicago. Scrol is an expert on the intricacies and new developments in the rules and regulations surrounding expensing of share-based payments, such as stock options. In the seminar, Scrol addresses the issues private companies must understand and the steps they need to take to ensure compliance with FAS 123R reporting requirements. The next two seminars are Oct. 29 and Nov. 19.
Further helping companies manage stock options and corporate equity management, SVB Analytics' eProsper unit also offers a Web-based software solution called CapMx®, which received a U.S. patent in August 2008. In addition the firm released a new set of enhancements to the CapMx solution allowing users to compute stock option expenses based on either a company's corporate fair market value or its 409A determined fair market value. The update specifically addresses the issues companies face when 409A valuations are at odds with a board of directors' "good faith determined" fair market value. More detailed product information can be found at www.eprosper.com.
About eProsper's CapMx®
As one of the most widely used equity management solutions on the market, CapMx's patent-protected solution helps private companies, their investors and their law firms easily track and analyze corporate securities while meeting complicated reporting and compliance requirements. More than 1,400 private, venture-backed companies benefit from CapMx.
About eProsper and SVB Analytics
eProsper is majority owned by SVB Analytics, a member of SVB Financial Group (Nasdaq: SIVB). eProsper provides on-demand corporate equity administration, analytics and capitalization management software to private, venture-funded companies through its industry-leading, Web-based software, CapMx. SVB Analytics services also include fair market company valuations for private, venture capital-backed companies and venture capital firms. More information can be found at www.svb.com/svbanalytics.
SVB Analytics is a non-bank affiliate of Silicon Valley Bank. EProsper is a majority-owned subsidiary of SVB Analytics and a non-bank affiliate of Silicon Valley Bank. Products and services offered by SVB Analytics and eProsper are not insured by the FDIC or any other Federal Government Agency and are not guaranteed by Silicon Valley Bank or its affiliates.
CapMx is offered by eProsper, Inc., which is a majority owned subsidiary of SVB Analytics.
Valtrinsic is an independent third party and is not affiliated with SVB Financial Group or its affiliates. SVB Financial Group does not provide tax or legal advice and clients should consult their own accountants and attorneys for such advice.
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