This course would cover the principles and practice in share scheme accounting.
The topics would include:
- the differences between accounting for shares and share options
- the impact of IFRS on share scheme accounting
- the impact of FRS 102 on share schemes
- the differences between tax accounting and accounting for audit purposes
It would look at the different models for share valuation such as Black Scholes and Monte Carlo
The course would also examine the impact of fair value accounting on share schemes
The course would then look at a case study approach from the beginning of a plan when budgeting needs to be done and the impact of the different choices in how a share scheme is funded e.g. market purchase; new issue; treasury shares etc.
The impact of forfeiture conditions be they service related or market related would be examined as they apply during the life of the share scheme.
The impact of forfeitures and non-exercise of options would also be examined as well as the cancellation of options and their replacement.
The course would also look at the differences between tax advantaged plans (CSOP, EMI, SIP, SAYE) and non-tax advantaged plans (including: option based, share based, performance related) in terms of accounting costs.
Based on the presenter’s experience, he would also examine the dynamics of the formulation of share scheme policy from an in-house perspective and how accounting affects decision-making.
Finally the course would look at the requirements to recharge subsidiaries for the share scheme costs of their employees and how in the light of the Waterloo case, HMRC are keen to see recharges to overseas subsidiaries of the costs borne by UK holding companies.
The basic elements of share scheme accounting can be covered in half a day. However for a more in-depth approach including case studies, I would recommend that a full day is allocated.
The charge for a half day would be £1,250 plus expenses
The charge for a full day would be £1,650 plus expenses