Introduction
Ledgy's IFRS 2 Expensing report helps you generate share-based payment expense reporting for a selected period using the grants, vesting data, valuation inputs, and accounting settings stored in Ledgy.
This article explains the current report-creation flow in the app, what settings you can choose before generating the report, and what you can export afterwards.
Before you start
Your company must have access to Financial Reporting / Option Expensing.
To create a new report period or change report settings, you need edit access to Financial Reporting. Users with view-only access can still open and export existing reports.
If required valuation inputs are missing, the report can show blank or incomplete expense values.
Generate the IFRS 2 expensing report
Go to Reporting > Financial.
In Report types, find IFRS 2 and click Generate.
In the modal, choose Report type = Expensing.
Set the Opening balance date and Closing balance date.
Review the report settings described below.
Click Generate report.
After a report has been created, you can use New report period in the page header to generate another period without going back to the Financial reporting home page.
What you can configure before generation
Report type
For IFRS 2, the report-type selector includes:
Expensing - Expense calculations in aggregate and per grant/tranche.
Disclosures - Supporting information for your financial statements.
DTA IAS 12 (Not in use) - Calculations for tax liability stemming from share-based payment expenses.
Journal entries - Availability depends on your company's setup.
This article focuses on the Expensing report.
Report period
If your company already has locked financial reports, Ledgy lets you choose between:
Continue from locked report - Default. Opening balance date defaults to your most recent locked report to start expensing from the day after the last locked closing balance; alternatively, you can pick another locked report by selecting it from the dropdown modal. Next, enter the Closing balance date manually (no option to use locked report).
Custom period - Enter the Opening and Closing balance dates manually to run a report for a different period instead of continuing from a locked report.
If no locked reports exist yet, the modal uses a custom period.
Filter data
Depending on your setup, the modal may also include a Filter data section.
You can either include all data or filter the report by:
Equity plans
Stakeholders
Grant date range
Grant types
Report Accounting Parameters Settings
Fair value
The Fair value section controls how Ledgy values awards for the report.
For non-RSU awards, Ledgy uses the selected pricing method. Black-Scholes is the standard option, and some companies may also have access to Monte Carlo (Not in use).
For RSUs, Ledgy uses Intrinsic value.
In the Black-Scholes setup, price per share comes from your fair value valuation data, expected term comes from the grant's timing data, and exercise price comes from the grant itself.
Depending on your setup, you may also see automation options for volatility (via peer companies) and risk-free rate (via government bonds).
Amortization
The Amortization section controls how expense is spread over time.
IFRS 2 uses a front-loaded amortization approach by default.
You can also choose the forfeiture rate method and the timeframe used to apply forfeitures.
Expected term
The Expected term section lets you choose whether expected term is calculated once at grant level or separately for each tranche.
Cost centre attribution
If your company uses cost-centre mobility data, Ledgy shows a Cost centre attribution section where you can choose how equity-settled and cash-settled grants are allocated across cost centres.
Terminations
Depending on your setup, you may also see a Terminations section with a switch to Reverse expense on termination of vested units.
Performance condition expectations
If you use performance conditions, Ledgy shows a Performance condition expectations section. This highlights whether expectations still need to be set up and links you to manage them, because these expectations affect the expense calculation.
What the expensing report shows
The IFRS 2 Expensing report is a Ledgy grid with built-in Summary and Detailed views.
Summary shows the cumulative expense as of the opening balance (
Expense OB), closing balance (Expense CB), and for the current period (Expense period).Detailed gives you the tranche-level breakdown used for audit and reconciliation work, including grant transaction data, fair value inputs and outputs, outstanding quantities, amortization method, forfeiture rates, and the resulting expense.
As with other Ledgy grids, you can create your own custom views by adding or removing columns and grouping the values by whichever field you need.
Once you are happy with a custom view, click "Save as new view" to create it as a new view. To save changes in an existing view, click "Update view". To remove changes done in an existing view, click "Revert". To fully remove the view, click "Delete view".
Export the report
Use Export report in the page header to download the generated report.
The current export options are:
Excel - All rows (groups collapsed)
Excel - All rows (groups expanded)
CSV - All rows (groups collapsed)
CSV - All rows (groups expanded)
Exports follow the report type, dates, filters, and settings you used for the current report.
For a IFRS 2 Report Accounting Settings deep dive please visit IFRS 2 Expensing Report - Accounting Parameters Settings deep dive.
Troubleshooting
Why do I see a warning about missing fair value valuations?
Why do I see a warning about missing fair value valuations?
Ledgy shows a warning when it cannot find the required fair value valuation data. Add the missing valuation inputs and regenerate the report.
Why are some expenses blank?
Why are some expenses blank?
The most common reason is that one or more required valuation inputs are missing for the affected grants. Please verify the following are present:
Expected term
Strike price (or exercise price)
Fair market value (per share)
Volatility of the stock
Risk-free interest rate
Why can't I create a new report period?
Why can't I create a new report period?
Common reasons are:
Your company does not have access to Financial Reporting / Option Expensing.
Your role only has view access and cannot change report settings.
When should I use Continue from locked report?
When should I use Continue from locked report?
Use it when you want the next report period to start immediately after a previously locked report, so your opening balance follows your locked reporting history.