Effective Cap Table Management for GAAP

Cap tables are a mystery to most until you actually have to maintain one. During this course we discuss various equity issues, what they mean and how to track them in a cap table that will provide the information we need for GAAP compliance.

This course:

• Reviews the difference between primary and fully diluted shares and who uses which for what.
• Identifies various equity transactions throughout a corporate life including founder stock, preferred stock sold to investors, options, warrants, convertible notes, and the nature of each.
• Explains how to track changes in equity holdings from purchases, sales, transfers, and transaction dates for Rule 144, shareholder meetings, voting and tax purposes.
• Explains how to tie-in and reconcile primary equity transactions to the relevant general ledger accounting records – common and preferred stock at par, additional paid-in capital.
• Explores stock option tracking: grants, valuation, vesting, exercises, cancellations, expiration and authorization records.
• Covers equity related expenses FAS 123R ASC 718 for options, ASC 815 for derivative liabilities in convertible debt and warrants.