Accounting value for employee stock options treated as compensation, requiring straight-line amortisation and lapse reversals. The accounting value of employee stock options granted in an accounting period must be treated as employee compensation and may be measured by intrinsic value or, where permitted, fair value. Recognised compensation is amortised on a straight-line basis over the vesting period, with special rules for graded vesting and the requirement that recognised amounts at any date equal at least the value of vested portions. Reversals are required when unvested or vested options lapse, and ESOS Outstanding and Deferred Employee Compensation are presented within Net Worth as positive and negative items respectively.
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.
Accounting value for employee stock options treated as compensation, requiring straight-line amortisation and lapse reversals.
The accounting value of employee stock options granted in an accounting period must be treated as employee compensation and may be measured by intrinsic value or, where permitted, fair value. Recognised compensation is amortised on a straight-line basis over the vesting period, with special rules for graded vesting and the requirement that recognised amounts at any date equal at least the value of vested portions. Reversals are required when unvested or vested options lapse, and ESOS Outstanding and Deferred Employee Compensation are presented within Net Worth as positive and negative items respectively.
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