How to manage fair value assumptions
To apply custom assumptions in Carta's Financial reporting tool, the scenario will need a report covering the grant dates of any grants needing a custom assumption.
If there are reports that have already been run covering the correct date range, you can find them by navigating to Compliance & Tax. Under Financial Reporting, click Get started.
Next, click the the Fair Value Assumptions tab.
Once a report has been generated in the scenario, custom Black-Scholes assumptions can be applied to the company’s awards.