Employee stock plan accounting: price discount on issued shares recognised as employee compensation in financial statements. Accounting under the ESPS treats shares issued to employees as a form of employee remuneration; the accounting value of shares issued is recognised as employee compensation equal to the aggregate price discount (the excess of market price over issue price) on shares issued during the accounting period, with corresponding ledger entries to Cash, Employee Compensation Expense, Paid Up Equity Capital and Share Premium Account.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Employee stock plan accounting: price discount on issued shares recognised as employee compensation in financial statements.
Accounting under the ESPS treats shares issued to employees as a form of employee remuneration; the accounting value of shares issued is recognised as employee compensation equal to the aggregate price discount (the excess of market price over issue price) on shares issued during the accounting period, with corresponding ledger entries to Cash, Employee Compensation Expense, Paid Up Equity Capital and Share Premium Account.
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