Modeling stock options

[Matthew Harris]

Hi, Martin. I really appreciate all the work you've done with the documentation. Might I suggest a brief section on stock options? I'm trying to do this, and it isn't quite working:

2000-01-01 open Assets:Cash USD

2000-01-01 open Expenses:Tax USD

2001-01-01 open Assets:Investments:Options:Grant123:ABC ABC

2001-01-01 open Income:Options:Grant123:ABC ABC

2001-01-01 open Income:Options:Grant123:PnL USD

2002-01-01 * "Stock Option Vesting"

  Assets:Investments:Options:Grant123:ABC  10 ABC {1.00 USD}

  Income:Options:Grant123:ABC

2002-06-01 * "Same-Day Sale"

  Assets:Cash  15.00 USD

  Expenses:Tax  2.00 USD

  Assets:Investments:Options:Grant123:ABC  -10 ABC {1.00 USD} @ 2.00 USD

  Income:Options:Grant123:PnL

; Verify we got the full grant.

2003-01-01 balance Income:Options:Grant123:ABC  -10 ABC

2003-01-01 close Income:Options:Grant123:ABC

2003-01-01 close Income:Options:Grant123:PnL

; Verify we exercised everything before it expired.

2003-01-01 balance Assets:Investments:Options:Grant123:ABC  0 ABC

2003-01-01 close Assets:Investments:Options:Grant123:ABC

(In a real-world example, there'd be vesting events every quarter or every month, which is why I want to verify the balance of the income account at the end.) In the vesting transaction in particular, it complains that I'm taking USD from an income account that is declared to have only ABC.

What's the right way to model this?

Matthew

[Matthew Harris]

Ha. I just saw the recent stock options thread in the Ledger group, where you suggested an approach. I'll have to study that closely.

[Martin Blais]

I was going to point this out indeed :-)

Try that and LMK if it works for you.

Nevertheless, you do point out at an interesting addition to the cookbook. I'll take the post and make a new section for it in the cookbook.

--
You received this message because you are subscribed to the Google Groups "Beancount" group.
To unsubscribe from this group and stop receiving emails from it, send an email to beancount+...@googlegroups.com.
To post to this group, send email to bean...@googlegroups.com.

To view this discussion on the web visit https://groups.google.com/d/msgid/beancount/16b5e482-9e46-4560-9354-8f4504c731c5%40googlegroups.com.

For more options, visit https://groups.google.com/d/optout.

[redst...@gmail.com]

FYI, I posted a simple example for ISOs to that Ledger thread. Feedback appreciated. Martin: please feel free to add that to the cookbook if you like it.

[redst...@gmail.com]

Providing a link to the ledger thread for reference:

https://groups.google.com/forum/#!searchin/ledger-cli/options/ledger-cli/zQHC7S80t90/3Ft8Tyr562sJ

[Chase Dwelle]

Bumping this old thread to see if anyone has had success modeling compensatory stock options (NSO in my case) with Beancount. The accounting for the grant and sale can be followed like the RSU example, which I also use, but I'm getting hung up on tracking the value with Beancount. Where I'm getting stuck is how I should be tracking the grant price (1.00 USD in the parent post here).

Given that both the RSU and NSO grants have vesting schedules, my plan is to only record the transactions with Beancount and use some form of parser to extract the vesting schedules/values to show future value.