White Feather

IFRS2 Reporting &

Fair Value Opinion

IFRS2 Reporting

International Financial Reporting Standards requires companies to recognise the cost of share-based awards to employees in the Profit and Loss accounts.

Our fully customisable IFRS2 reporting suite (which can cover US GAAP reporting), can be integrated with Howells Share Plan Admin or Insider List software or stand alone. 

 

Adding tax, we provide further analyses:
  • Line-by-line social security reserving

  • Deferred tax entries (equity and P&L)

  • Corporation tax deduction amounts based on the data we will keep on exercise prices achieved

  • Based on outcome assumptions, leaver rates and fair values, we provide an IFRS2 charge for full and half-year reporting

  • Standard reports for accounts disclosure and schedules showing the IFRS2 charge across subsidiaries, divisions and countries if required.

We will:
  • Calculate the IFRS2 accounting charge for the reporting period

  • Full, person-by-person, IFRS2 amortisation reporting with assumptions that can be tailored for each award

  • Includes social security reserve

  • Prior to launch we will carry out a full reconciliation.

IFRS2 forward planning

We work closely with you to achieve efficiencies and we can extend our work to provide budgeted future IFRS2 charges and divisional based analyses.

Fair Value Opinion

 

International Financial Reporting Standard no2 requires companies to value their share plan awards and then charge this “cost” (number of shares under award multiplied by the IFRS2 Fair Value) to income.

 

Our service deals with both market-based awards (awards where the performance outcome is linked to share price) and non market-based awards.

Our approach to both forms of award is underpinned by the Black-Scholes option pricing formula. Where market-based performance measures are used this is supplemented by a Monte-Carlo simulation process which models the likely outcomes based on the volatility of your company’s and your comparator companies’ TSRs and the correlation between your company data and your comparators'.

 

Our IFRS2 Fair Value Service is a stand-alone service; you do not need to be a SchemeTrack or IMTrack client to use the service.

AWARD
DOCUMENT REVIEW
DATA
CAPTURE

For awards with share price based targets

(Market-based awards)

AWARD
DOCUMENT REVIEW
DATA
ANALYSIS
DATA
CAPTURE
MODEL
DESIGN
MONTE CARLO
FAIR
VALUE
REPORT

For awards with non-share price related targets

(or no targets)

DATA
ANALYSIS
MONTE CARLO
FAIR
VALUE
REPORT

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Howells Associates Ltd

32 - 34 Freemans Way, Harrogate, HG3 1DH

Contact Us

 

+44 (0)1423 812 800

enquiries@howells-associates.com

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