How to separate expense into ISO vs NSO in the Financial Reporting tool
The separation of expenses into ISO and NSO categories is important for accurate financial reporting and compliance, as ISOs and NSOs have different regulatory requirements and tax treatments.
The ISO/NSO expense totals can be calculated by adding four columns within the Tranches tab of the SBC Expense report.
ISO %
The first column in the equation is ISO %.
It is calculated by taking the ISO Quantity and dividing it by the Quantity of tranche.
NSO %
The second column is NSO %.
It is calculated by taking the NSO Quantity and dividing it by the Quantity of tranche.
ISO Expense
The third column is ISO Expense.
It is calculated by taking the ISO % and multiplying it by the Period expense post-forfeiture.
NSO Expense
The last column is NSO Expense.
It is calculated by taking the NSO % and multiplying it by the Period expense post-forfeiture.