Forfeiture rate question

Question

We had a question from the auditors regarding forfeiture rate. Is there a report that shows our forfeiture rate of 7.5% and the basis for this assumption?

Answer

Greetings from Carta's 718 team. The forfeiture rate for ASC 718 reporting is not determined by Carta, but rather by the company. The 7.5% used for the expense reports is a manually entered value each time a new report is created and is not automatically calculated by Carta.

We do, however, have resources for companies who are unsure on the % rate to use. The following support articles can provide more detail:

As a heads up the estimation of forfeiture is no longer required under ASC 2016-09 for non-public entities. If this is the case you can simply enter 0% when creating a new report, and the system will automatically account for forfeitures as they occur in real time. Let me know if you have further questions.

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