IFRS 2 and ASC 718 Valuations That Integrate With Your Equity Workflow

Hand holding a stylus, pointing at a laptop screen displaying financial charts and data.

Table of Contents

ShareForce delivers IFRS 2 and ASC 718 compliant share-based payment valuations faster and at lower cost than traditional providers. Outputs attach directly to grants, feed expense calculations automatically, and carry a built-in audit trail — no PDF to unpack, no manual bridging.

Managing equity plan valuations through a disconnected provider is one of the most persistent friction points in share plan administration. If your current workflow involves resending inputs every cycle and waiting weeks for a static document, you are absorbing a structural problem — not an inevitable one. Book a demo to see how an integrated valuation workflow changes the picture.

Why Are IFRS 2 Valuations Slow to Receive From Traditional Providers?

Most valuation firms operate entirely outside your equity management platform. Every reporting cycle, you resend plan rules, grant history, volatility inputs, and cap table data. They rebuild their model from scratch. Work enters their queue. Three weeks pass.

The delay stems from the structure, not from incidental factors. Traditional providers design their services around their own processes, adding a separate engagement layer that sits on top of your workflow instead of integrating with it.

ShareForce speeds up valuations by structuring plan data, grant history, and market data from the start, making all inputs immediately available. You get your compliant fair value exactly when your reporting cycle needs it, rather than waiting for an external firm’s schedule.

The bottleneck is not complexity. It is a disconnection. A platform-native valuation removes the gap between where your equity data lives and where your valuation is produced.

What Should an IFRS 2 or ASC 718 Valuation Actually Deliver?

1. Speed matched to your reporting cycle

Both IFRS 2 and ASC 718 require share-based payment expenses to be recognised at fair value at the grant date. That fair value feeds your financial statements, board pack, RemCo reporting, and statutory disclosures. When it arrives late, everything downstream stacks up.

A valuation that arrives in days rather than weeks removes a recurring bottleneck from the finance function. This is particularly important for organisations managing frequent grant cycles, where an annual valuation is simply insufficient for compliance. Our article on the most common misconceptions about IFRS 2 and ASC 718 explains exactly why grant-date timing matters.

Our article on the most common misconceptions about IFRS 2 and ASC 718 explains exactly why grant-date timing matters.

2. A fair value that flows into your system, not a PDF to unpack

The output of a valuation is a fair value. That fair value needs to attach to grants, feed expense calculations, and appear correctly in disclosures. When it arrives as a static document, someone manually bridges that gap — introducing reconciliation risk every cycle.

ShareForce valuations are produced inside a purpose-built platform: the fair value attaches, calculates, and is fully auditable. No copy-paste. No separate reconciliation step. This is the same principle that underpins how share plan reporting across Finance, HR, and RemCo works in ShareForce — a single source of truth feeding every output.

This is the same principle that underpins how share plan reporting across Finance, HR, and RemCo works in ShareForce, with a single data source feeding every output.

3. A cost that is straightforward to justify

External valuation fees are difficult to defend when the output still requires manual work to make useful. ShareForce valuations cost less than traditional providers by design. Specialist tooling built exclusively for share scheme valuations means lower overhead, no broad advisory practice to subsidise, and a line item that is easy to explain to finance leadership.

For a full breakdown of what good value looks like from a valuation partner, see our guide on what finance teams really need from an equity valuation partner.

What Does a Well-Integrated Share Scheme Valuation Look Like?

You achieve the best valuation setups by embedding them in your workflow, not by managing vendor relationships outside of it. Four characteristics define a genuinely integrated valuation:

Structured inputs, not repeated submissions

You capture plan data, grant history, and market inputs once, then draw on them for each cycle—no need to re-explain or rebuild.

Transparent methodology

Finance teams can interrogate assumptions and document rationale directly, without emailing back for a methodology note. Auditability is built in from the start, not retrospectively assembled.

Get share-based payment accounting guidance

Fast revaluations when conditions change

When a plan feature changes or market conditions shift, a revaluation means updating inputs and regenerating — not opening a new engagement. For organisations managing TSR-linked executive incentive plans, where Monte Carlo inputs can shift with market conditions, this responsiveness is essential.

A built-in audit trail

Every valuation, revision, and input assumption is logged. When auditors ask, you have answers, not a folder of PDFs. This is particularly important for multi-jurisdictional organisations, where international equity plan compliance adds another layer of documentation obligation.

The harder question for finance teams is not whether you need a valuation; it is whether your current provider’s output integrates with how you actually work. If the answer is “we bridge the gap manually”, you are absorbing a cost and a risk that does not need to exist.

Who Uses ShareForce for IFRS 2 and ASC 718 Valuations?

ShareForce serves finance teams, reward and HR managers, and plan administrators at organisations that take share-based payment compliance seriously. Common use cases include:

  • Companies preparing annual financial statements under IFRS or US GAAP that require share-based payment disclosures
  • Organisations with frequent grant cycles — quarterly or monthly — where an annual third-party valuation creates timing gaps
  • Multi-jurisdiction businesses managing equity plans across countries with different tax treatment and reporting obligations
  • Companies scaling their equity programmes who need valuation speed and accuracy to keep pace with grant activity
  • Finance teams that have outgrown spreadsheet-based valuation tracking and need a defensible, auditable process

ShareForce valuations are available as a standalone service or as part of the full equity plan management platform, depending on where you are in your equity administration journey.

How ShareForce Valuations Connect to Your Equity Plan Management Platform

You should not treat a valuation as a standalone event, it serves as a data input that flows through your entire equity management workflow. In ShareForce, you connection valuations directly:

  • Fair values attach to individual grants at the point of issuance — no manual entry, no version mismatch
  • Expense calculations update automatically as fair values are confirmed or revised
  • Disclosure reporting draws from the same data source, eliminating the reconciliation work that sits between valuation and reporting in disconnected setups
  • Audit trails are consolidated — valuations, grants, vestings, and reporting all sit within the same platform log

This integration goes beyond technical convenience. It actively removes reconciliation risk, eliminates manual bridging, and prevents version control problems that occur when you handle valuation and administration separately.

If you already use ShareForce for plan administration, accounting and financial reporting, participant experience, and data migration, you complete the workflow by adding valuations. If you use ShareForce for valuations alone, you can seamlessly integrate the platform alongside your existing equity management setup.

Capricorn Energy’s Seamless Migration to ShareForce

Learn how Capricorn Energy achieved integrated IFRS 2 reporting, automated participant communications and a modern self-service portal with ShareForce in our recently published case study.


Frequently Asked Questions

Can I use ShareForce for valuations without switching my equity management platform?

Yes. ShareForce offers share scheme valuations as a standalone service. If your current equity management setup is working, you can use ShareForce for the valuation work alone. The full platform is also available if you want to bring equity management, expense calculations, and reporting under one roof.

What valuation standards does ShareForce support?

ShareForce builds valuations specifically to meet the requirements of IFRS 2 (share-based payment) and ASC 718 (compensation: stock compensation). We cover all plan types under both standards, including stock options, restricted stock units (RSUs), share appreciation rights (SARs), performance shares, and employee share purchase plans (ESPPs).

What is the difference between IFRS 2 and ASC 718?

Both IFRS 2 and ASC 718 require companies to recognise the fair value of share-based payments as an expense. IFRS 2 applies to companies reporting under International Financial Reporting Standards; ASC 718 applies under US GAAP. The core measurement principles are similar — fair value at grant date, recognised over the vesting period — but there are differences in classification, modification accounting, and tax treatment. ShareForce supports both standards.

How does ShareForce handle audit requirements for share-based payment valuations?

Every valuation produced in ShareForce carries a complete, timestamped audit trail. Inputs, assumptions, methodology, and revisions are all logged within the platform. Auditors can be directed to structured records rather than a folder of static documents. This aligns with how ShareForce supports incentive plan administration more broadly — a single audit trail across HR and Finance is a core part of the platform design.

Why is there a manual bridging problem with traditional valuation providers?

Traditional providers deliver a PDF or static report. Finance teams must then manually extract the fair value, enter it into their equity management system, and reconcile it with grant records and expense calculations. Each step introduces the risk of entry error or version mismatch. A platform-native valuation removes this by attaching the output directly where it is needed.

How much does a ShareForce valuation cost?

ShareForce valuations cost less than traditional valuation providers by design. The platform is built specifically for share scheme valuations — there is no broad advisory practice to subsidise, and specialist tooling reduces the overhead that traditional firms pass on to clients. Pricing is available on request; contact the ShareForce team to discuss your grant volume and reporting requirements.

Can ShareForce handle multi-jurisdiction equity plan compliance?

Yes. Multi-jurisdiction plan administration is a core ShareForce capability. The platform supports equity plans operating across multiple countries, accounting for different tax treatment, regulatory reporting obligations, and local compliance requirements. This is particularly relevant for organisations managing equity plans under both IFRS 2 and ASC 718 simultaneously.

What plan types does ShareForce support for IFRS 2 valuations?

ShareForce supports valuations for the full range of equity plan types, including stock options, restricted stock units (RSUs), share appreciation rights (SARs), performance shares, employee share purchase plans (ESPPs), and phantom share plans. Plans with market conditions — such as TSR-linked performance awards — are supported through Monte Carlo simulation.

See How ShareForce Works

If your current valuation process involves resending inputs, waiting for static documents, and manually bridging the gap into your equity management system, there is a better way.

ShareForce delivers IFRS 2 and ASC 718 compliant valuations inside an integrated equity plan management platform — faster, at lower cost, and with a built-in audit trail that holds up under scrutiny.

Book a demo with ShareForce to see how a fully integrated valuation workflow changes the picture. Or explore how ShareForce supports plan administration, accounting and financial reporting, and participant management across your entire equity programme.