PracticeAuditShare options threatened by new standard

Share options threatened by new standard

Finance directors could stop offering company share options to avoid volatility on their balance sheets if the International Accounting Standards Board pushes ahead with its proposals for a new accounting standard.

Not-for-profit making investment advisers Proshare, warned that FDs anticipate balance sheet fluctuations on the scale of those caused by FRS 17 standard on pensions, and could drop staff share options as a remedy. Diane Hay, chief executive of Proshare, said: ‘There will be volatility on the balance sheet so that FDs may not want to offer share schemes.’

Under IASB proposals, companies will have to charge share options to their accounts as an ‘expense’ – a move that most companies are fervently against.

UK plc’s resistance has been further strengthened by opposition from the European Commission and Unice, the pan-European body for business organisations, Accountancy Age can reveal.

The EC suggests that the IASB requires disclosure only, while Unice says that the proposals are ‘a step in the wrong direction’ and have not ‘sufficiently assessed the consequences’. The IASB will publish responses to the consultation next week. It hopes to issue an exposure draft before the end of this year with a view to publishing a new standard next year.

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

5d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor