The Big Four firm said it had ‘serious reservations about both the principles and the practicalities of the proposals’ that will see share-based payments charged to the profit and loss account.
‘We have significant concerns about the subjectivity and reliability of employee share option values derived from traditional option pricing models such as Black-Scholes,’ said Ernst & Young in a statement.
It added that investors were only concerned with share options that resulted in the dilution of shareholder value and urged the standard setters to develop valuation methodologies and improved valuation guidance.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements