Share and share alike: the Urgent Issues Task Force should drop SAYE schemes from its proposed Abstract
Article Abstract:
The recent draft Abstract on 'Employee Share Schemes' published by the UK Accounting Standards Board's Urgent Issues Task Force (UITF) requires corporate reports to disclose the commercial cost of the shares that a firm has agreed to give to employees over the period to which performance is to be linked to stock-based incentive plans. The proposed regulations are meant to deal with annual bonuses and long-term incentive plans usually given to reward executives, but the UITF holds that the principles underlying these regulations also apply to SAYE schemes. However, if the rules are extended to SAYE schemes and employers are compelled to expense the discount, the latter may simply choose to stop offering what are widely considered to be socially and economically advantageous plans. While the UITF strives to develop rulings that are technically correct and supported by sound accounting principles, it must also try to consider their economic and social consequences.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1997
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Urgent Issues Task Force abstract 3 treatment of goodwill on disposal of a business
Article Abstract:
The Urgent Issues Task Force has determined that consolidated profit and loss accounts related to the disposal of previously acquired businesses are dependent on the amount of purchased goodwill deducted against reserves in accordance with accounting policy and uncharged in previous profit and loss accounts. This recommended accounting treatment is contained in the Statement of Standard Accounting Practices 22 concerning accounting for goodwill. Consequently, proposals are underway for the restructuring of the profit and loss account through the creation of a Financial Reporting Standard. The proposals presented by the Accounting Standards Board are contained in the Financial Reporting Exposure Draft 1.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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