Dot.coms share options fright
The UK's accounting standards-setter today unveiled controversial plans to force the rising number of companies that offer staff share options to show costs in their profit and loss accounts.
The UK's accounting standards-setter today unveiled controversial plans to force the rising number of companies that offer staff share options to show costs in their profit and loss accounts.
Dot.com companies, which have relied heavily on generous share options to reward employees, will find their bottom lines particularly badly hit.
Lastminute.com finance director Julian Culhane said: ‘By putting share option costs in the profit and loss account, they would be just another charge dependent upon the share price over which companies have no control.’
But Sir David Tweedie, Accounting Standards Board chairman, said a significant amount of employee remuneration is going unreported.
‘Sadly, practice has developed in a manner that assumes share-based payments are merely paper transactions that aren’t at the expense of a company,’ he said, asserting his determination to ‘nip the trend in the bud’. He hopes the standard, developed by G4+1, an international group of standard-setters, will have global influence.
International accounting standards are likely to become more important with the consolidation of global stock markets. The London Stock Exchange, Deutsche Borsche and Nasdaq this week launched merger discussions to create a new global exchange, iX. Techmark, the LSE’s new technology inmdex is expected to move to iX in 2001.
Sir David is leaving his post to become chairman of the board of the International Accounting Standards Board. The search for his successor has begun with an advert placed today.
The numbers you crunch tell a story. Your expertis...
24yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View article61% say providing financial support for their family is of importance to them, with 77% currently doing so Read More...
View articleStartups face unique financial challenges, such as cash flow volatility and equity-based compensation complexities. Innovative strategies and technolo...
View articleThere is optimism that the IPO market will rebound in the second half of 2024, driven by pent-up demand and potential improvements in economic conditi...
View articleIn 2019, the a survey conducted by the FRC highlighted that only 17% of women held partner-level positions Read More...
View articleDains believes a corporate structure is the best way to maximise the benefits of its growth strategy Read More...
View articleBoth employer and employee will benefit from flexibility and cost-saving Read More...
View articleThere are nine key areas that accounting practices must get to grips with as client expectations and technological developments rise, while team membe...
View articleWhen employees publish opinion and statements on social and other online mediums, they may be leaving themselves open to interpretation of codes of et...
View article