PracticeConsultingASB abstract fails ‘elementary’ test

ASB abstract fails 'elementary' test

An abstract issued by the Accoounting Standards Board has failed an 'elementary accountancy test', according to the editor of an online accountancy encyclopedia.

Explaining the entry on the Urgent Task Force’s abstract in the Encyclopaedia of Current Accounting Law and Practice Bob Willott, former technical director at the ICAEW insists the abstract is faulty.

The entry deals with employers’ National Insurance contributions on employees’ share options. It states that for the requirement to be achieved, the amount to be recognised should be calculated by applying the latest NI rate to the difference between the market value of the underlying shares at the balance sheet date and the option exercise price.

But Willott said the terms of the abstract means that even when the market value of shares has fallen below the ‘exercise price’, a provision will have to be made in the accounts.

Links

Urgent Issues Taskforce Abstract 25

ASB website

The Encyclopaedia of Current Accounting Law and Practice

Archive

ASB prepares for global standard

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer