EquatePyramid

ACCOUNTING AND
FINANCIAL REPORTING

Market leading enterprise solution supporting IFRS and US GAAP

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Flexible, advanced, compliant

EquatePyramid can be integrated with any leading plan administration system, such as EquatePlus, to deliver an extensive range of advanced accounting and disclosure reports.

 

Compliant with IFRS and US GAAP, EquatePyramid can receive feeds containing participant and transactional data directly from company records and third-party administrators to create reports in real-time.

We separate the Financial Reporting Competence Centre from our plan administration teams to ensure that both business lines deliver state-of-the-art software and services within their field.

 

With 20 years’ experience, our teams of accounting experts have comprehensive accounting and financial reporting knowledge from all types of share-based and deferred cash compensation plans.

Flexible

Advanced

Compliant

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Leading capability

EquatePyramid is the market leading accounting and financial reporting software for equity compensation plans. With extensive experience proven across more than 100 multinational clients and Big 4 audit firms, the platform also handles complex features such as pay-out caps, variable strike prices, intricate vesting schedules, performance conditions and mobility.

Extensive reports

Expense Report

This report is an integral part of the financial reporting. The report shows the expense for the period that is to be recognised and reported in the financial statement. Expenses are calculated in compliance with IFRS 2 or ASC 718 (US GAAP). For equity-settled instruments the grant date fair value is used, while for cash-settled instruments fair values are calculated on the reporting from-date and to-date in real-time (liability accounting).

The report calculates the opening balance, in-period expense and the closing balance.

Social Security Accruals Report

This report provides calculations of accruals of social security tax. Pyramid supports both intrinsic and fair value real-time calculation of accruals.

The social security tax rates applied in the report can be registered at a legal entity level, overridden per participant or also be specified at a grant or tranche level.

The report calculates the year opening balance, year-to-date accrual, report opening balance, in-period accrual and the report closing balance.

Deferred Tax Assets (DTA)

This report calculates deferred tax assets (DTA) and provides the required figures for accounting. Deferred tax calculations are handled in compliance with IAS 12 (IFRS) or ASC 718 (US GAAP). EquatePyramid handles an infinite number of corporate tax rates to calculate DTA specific to each legal entity in the company. Based on our unique subplan setup, Pyramid can also differentiate between tax-deductible grants and non-deductible grants as tax legislation differs between jurisdictions.

DTA calculations in compliance with IAS 12 are divided into a P/L entry, an equity entry and total deferred tax during the period. The report also shows the opening and closing balances for P/L entry, equity entry and total deferred tax.

Dilution Report (Diluted EPS)

This report calculates dilutive instruments according to IAS 33 (IFRS) or ASC 260 (US GAAP). It calculates the period’s as well as the year-to-date dilution. The dilution figures are then incorporated into the diluted EPS calculation. The average stock quotes for the calculations can be based on stock quotes that are imported automatically in the system or overridden by the administrator.

Disclosure Reports

There are several standard reports that together constitute the disclosure requirements.

These reports are generally used to prepare figures used in the statutory notes to the financial statements, and they are made to be cut and pasted into the notes.

Some of the reports are:

  • Activity report showing activity for three periods (awards, exercises, forfeitures, releases etc.)
  • Outstanding report showing data for outstanding awards
  • Customisable activity report showing relevant activity for one period

Mobility Report

All mobility is stored and can be reported on, e.g. for complex expat taxation calculations.

Other Reports

In addition to the standard accounting reports, there are several custom reports and reporting wizard functionality that should provide you with all relevant details you might require.

Key features

Reporting Wizard

The Reporting Wizard allows you to create custom reports to meet your requirements regarding content and layout. You can export in your desired format: excel, html, csv, txt.

Valuations

The Black & Scholes – Merton model with support for increasing strike or caps/brakes is integrated in Pyramid. Also valuations for modifications using the Black & Scholes – Merton model can be done in Pyramid. There is a full audit trail with regards to input and assumptions.

In addition Equatex also performs complex valuations using binomial models or customised Monte Carlo simulation models when required. Pyramid enables storing of external valuations with input and assumptions down to transaction-level.

Mobility

There is complete mobility support on legal entity, 6 different accounting dimensions (e.g. business units, cost centre, geographical location), social security tax regime, home country, host country, tax country and more. All mobility history is stored and can be reported upon.

The different reports incorporate mobility in compliance with the relevant standard.

Performance Conditions

Performance conditions are incorporated in compliance with the relevant standard. The integrated performance functionality allows for performance tracking where all historical estimates and actuals are stored. Non-market and Market conditions are supported where quantity, exercise price (if applicable) and/or vesting date can be variables.

Accounting Principles and Expectations

The subplan setup in Pyramid enables full control over assumptions and accounting principles. Expected forfeiture and other assumptions or expectations, which impact the accounting, can be set on a subplan level and updated with history.

Extensive Sorting/Grouping and Drill-Down

The different reports enable sorting and grouping with drill-down to a transactional level. This enable efficient reporting compliant with your internal bookkeeping procedures and alternative sorting for group controlling activities.

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EquatePyramid is the market leading enterprise solution for equity plan financial reporting.