Share Based Payments
With many long term incentives underwater and recent tax changes, many companies are currently either considering recalibrating existing awards or rewarding employees through other means. With the complexity of the share based payment accounting standards, these changes may have unintended consequences in the company accounts. Understanding the accounting treatment is therefore critical to arriving at the most appropriate solution.
We can help companies in the accounting and valuation of share based payments and options under international, Irish and US accounting standards. Our team utilizes sophisticated valuation models that can be adapted to take into account the precise features and performance conditions of your scheme. Valuations can be used for design, accounting and tax purposes.
We can help clients:
- Set and support assumptions
- Determine the most appropriate model (Black-Scholes-Merton, Binomial or Monte Carlo)
- Prepare valuations of the fair value of awards and options under international, Irish and US accounting standards
- Prepare and model p&l/ income statement figures
- Ensure that they comply with the requirements of IFRS 2
- Model the impact of changes to awards
- Understand and quantify the accounting impact of new awards and changes to existing awards
Please do not hesitate to contact a member of our Pensions and Reward Services team with any queries you might have.