If your company grants stock options or equity awards, ASC 718 determines how that compensation hits your financial statements. Here's what founders need to know before their first audit.

A 409A valuation is an independent appraisal of the fair market value (FMV) of a private company's common stock. Its primary purpose is to establish the minimum exercise price (also called the "strike price") at which employee stock options can be granted without triggering adverse tax consequences under IRC Section 409A.