Idea Details

 

Add "true straight-line" amortization to financial reporting

Last activity 02-01-2022 12:49
Justin Glaittli's profile image
By: Justin Glaittli
12-02-2021 08:22

The current amortization methods within Carta financial reporting are FIN-28/accelerated amortization, and a graded straight-line method. While this works adequately for most standard grants, graded straight-line is often questioned by auditors and for any vesting schedule that is not an even amount of vesting through time, it produces inaccurately allocated expense across time. Non-standard schedules such as boxcar grants are trending, and this amortization method is necessary to make Carta financial reporting a viable solution.