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Accounting & Financial Aspects

We aim to provide an all-round service to our clients, and therefore offer:

  • guidance on applying the rules for accounting for share-based payments;
  • financial modelling for all types of share plans;
  • bespoke benchmark reports for share plan offerings.

Accounting
The rules on accounting for share plans are increasingly important given the requirement for:    

  • a charge through the income statement 
  • accounting treatment for employee trusts which, for plcs, can impact the level of distributable reserves

We can help you consider your company's share plans in the context of the rules and to implement any changes the company decides to make. 

We can help you to quantify the likely accounting charges for your employee share plans. 

Financial modelling
Share plan modelling can help you understand the way in which a share plan may have financial effects on your company and employees over a period of time.

It is potentially a very important step in the design of a share plan, particularly if the plan contains different design elements and is to involve many employees.  

The success of any share plan relies not only on which type of plan is chosen for the company, but also on how that plan is then designed and tailored to further meet the objectives of the company. 

Whatever type of plan may be appropriate for your company, modelling the financial effects that may result from operating the plan in different ways will often be an important step in helping you decide how your plan should be designed and calibrated, taking into account possible reward outcomes, costs to the company (whether cash or notional) and the effects of tax.