8/24/2016

Employee Stock Options | Derivatives Risk Management Software & Pricing Analytics | FINCAD

EMPLOYEE STOCK OPTIONS

RESOURCES

Overview
(/node/17)

EMPLOYEE STOCK OPTIONS

IFRS 2 and Topic 718 (FAS 123R)
An overview of the nancial accounting standards for companies that

Resource
Library

issue share-based payments such as employee stock options (ESOs)

or share appreciation rights (SARs) are outlined below. Each

overview contains a short description of the accounting regulation as

(/resources/resourceit applies to valuation" only. It does not specify the required methods
library)
for share-based payments, nor how taxes are treated. For a more

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complete and detailed description of each standard, it is

recommended to visit the respective issuers website.

(/resources/ncadblog)

Events

Title

IFRS 2

Topic 718 (FAS 123R)

Share-Based

Topic 718 Stock

Payment

Compensation

(/resources/events)

International

Learning
Resources

Issuer

(/resources/learningresources)

Wiki

(/resources/learningresources/wiki)

Articles

(/resources/learningresources/articles)

Accounting
Standards Board
(IASB)

WATCH

(HTTP://GO.FINCAD.COM/ADVANCED-

DEMAND.HTML)

(FASB)

Effective

January 1, 2005

June 1, 2005
Topic 718 (/node/530)
mandates that all
entities recognize the
cost of employee

Regulations

payments be

(/resources/learningresources/regulations)

recognised as an

in their nancial

expense, at fair value

statements at fair

measurement unless,

value measurement.

Derivatives
for equity-settled
http://www.fincad.com/resources/learning-resources/regulations/employee-stock-options

Standards Board

USA

share-based

Watchthe
on-demand
webinar to
learn more
about
advanced
OIS Curve
Building.

OIS-CURVE-BUILDING-ON-

International

requires that all

OIS
CURVE
BUILDING

Financial Accounting

Region

IFRS 2 (/node/529)

Webinar

stock options (ESOs)

The same applies to

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8/24/2016

Derivatives
&
Hedging

Employee Stock Options | Derivatives Risk Management Software & Pricing Analytics | FINCAD

(/resources/learning-

Overview
resources/regulations/derivatives-

for equity-settled

The same applies to

transactions, that fair

other share-based

value cannot be

payment awards in

estimated reliably.

the form of options,

Fair
Value
Measurements
&
Disclosures

IFRS 2 encompasses

shares, and share

the issuance of

appreciation rights

shares, or rights to

(SARs) granted to

(/resources/learning-

shares, in return for

employees. The

services and goods.

statement permits

Examples include

entities to use any

measurements-

share appreciation

option-pricing model

disclosures)

rights, employee

but prefers lattice

share purchase

models.

hedging)

resources/regulations/fairvalue-

Employee
Stock
Options

plans, etc.

(/resources/learningresources/regulations/employee-

FINCAD solutions contain various option-pricing

stock-

models including Black-Scholes, lattice, and

options)

Hull-White basic and advanced models for

valuing employee stock options. The Excel

Business

solutions also contain complete ESO workbooks.

(/resources/learningresources/regulations/basel-

How

ii-basel-iii)

FINCAD

Derivatives
(/resources/learning-

can help

resources/regulations/doddfrank-andemir)

Applicable FINCAD solutions:

F3 (/node/28)
FINCAD Analytics Suite (/node/34)
Insight Solutions (/node/47)

Request a free demo (/node/55) of one of the

Glossary

(/resources/learningresources/glossary)

above solutions

We hope that thisinformation will assist you, but it should not be

used or relied upon as a substitute for your own independent

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research. For a more comprehensive view of the

standards/requirements, please visit the respective issuer's website.

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