PracticeConsultingIASC sets stage for share-based standard

IASC sets stage for share-based standard

The International Accounting Standards Committee has published controversial proposals to make companies include the cost of using share and share options in the profit-and-loss account.

The news comes after the UK Accounting Standards Board last week published its discussion paper on share-based payment. At present, the cost of an option is only reflected in the p&l account if the option price is lower than the price at which the shares are trading.

Sir Bryan Carsberg, secretary-general of IASC, said: ‘Accounting for share-based payments is an area of increasing importance internationally. As more companies enter public ownership the existence of share-based payments is growing rapidly.

‘The proposals in the UK have caused much concern among high-tech companies that have increasingly used this method to reward staff at a time when they are making little or no profit.’

The publication is a result of G4+1 group, a club of standard-setting boards from Australia, Canada, New Zealand, the UK and the USA, as well as the IASC.A similar proposal recently published in the US prompted a backlash from the business and political arena, resulting in a watered-down proposal that only demands disclosure.

‘The United States has had accounting standards in place for a number of years, but their most recent standard, was extremely controversial,’ said Sir Bryan. ‘This Position Paper draws on the US experience as well as recent developments in other countries and should aid the convergence of accounting standards for share-based payments.’

Comments on the proposal are to be submitted to IASC by 31 October 2000.

IASC website

Dot.coms share options fright

Tweedie wins vote at IASC

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