Scheme Design and Financial Considerations
This part of the topic index contains resources on scheme design and financial considerations. Please select the resource that you require by clicking on the relevant tab below.
4
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| 1 | Accounting for share schemes: an overview Most companies must record an expense in their profit and loss accounts for share-based payments. This note is an overview of the main concepts and issues involved in accounting for share schemes. Accounting considerations can influence share plan design. This note is aimed at subscribers who are not accountants and provides a brief introduction to what can be a complex and specialist area of accounting practice. | Practice note: overview | Maintained |
| 2 | Accounting for share schemes: an example comparing the ... The international accounting standard IFRS 2 requires companies to recognise share-based payment transactions (accounting charges, financial position and disclosure) in their financial statements. It is necessary for companies to account for all share incentives, including share option schemes. This note sets out an example comparing the profit and loss account treatment of a share option compared with the treatment of a long term incentive plan award. | Practice notes | Maintained |
| 3 | Categorising performance conditions: a brief guide Executives will normally only benefit from incentive schemes if pre-set performance conditions are fulfilled. It is useful to understand the main categories of performance conditions. This understanding helps explain why particular performance conditions are chosen. Also, it is essential to be able to distinguish some categories of performance conditions to establish the correct accounting treatment of the share plan. | Practice notes | Maintained |
| 4 | Funding employee benefit trusts: financial assistance, UITF ... Companies often establish an employee benefit trust (EBT) to satisfy employee share options and awards. Funding an EBT to acquire shares can cause difficulties for public companies under the company law financial assistance rules. This practice note sets out the issues and some possible solutions. | Practice notes | Maintained |