AccountingBLOCK - Tax and Accounting Forums

Accountants CPA Hartford: William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor, has made an article explaining and illustrating the Calculated Value Method of SFAS No. 123R, used to value stock options of non-public companies as compensation to employees. The article is available on the following website for all those interested: The Calculated Value Method of SFAS No. 123R: Explanation and Illustration. If you have any questions, comments, or suggestions, please contact us at Accountants CPA Hartford: William Brighenti, CPA.

Yes, (exclamation) I need this article.

LLC, LP, LLP Context
(Readers remember: LLCs surpassed stalwart Corporation as most numerous entity)
To the above forum member. Helse requests a dialogue relating to present and future
options to purchase partnership entity equities in exchange for services. Example:
Newco LLP grants $100,000 service option, payable in 12 parts over 1 year, to accountant
for services in calendar year. Is Corporation analysis applicable to partnership if
option is for future services?

Corp Stock or LLC Shares
By analogy the "stock" option valuation may help to solve a long standing "dispute"
between Helse, Zahid and Pat. We are not arguing, merely stalled on budget vs. tax
and securities valuations. If we declare LLC share immediate value, federal and state employment
and income tax is triggered. Pat and Helse are yet to reconvene our discussion relating
to treatment of so-called "evergreen" options.

Booking LLC Future Interests Exchanged for Services
(Readers remember: Obamacare's 10% tax will mimic FICA worker classification rules)
If LLC distributes option to purchase LLC shares (stock) how shall we treat option
price if option strike prices are "out of the water" (exceed current market value of
LLC interest.

Merci for link and eagle eye poster.

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Options cannot exceed current fair values, and how were these current values determined? I'm confused, sorry. If I understand you correctly, I would use the values according to the model in the calculated value method and then discount for time value, which shouldn't be much with these low interest rates. If I am misunderstanding you, please reply.

Accountants CPA Hartford, William Brighenti, Certified Public Accountant