Almost two-thirds of companies support a new international accounting standard requiring them to expense employee share options in their financial statements, according to a survey by Mercer Human Resource Consulting.
The standard, IFRS 2, requires European-listed companies to make a charge in their income statements to reflect the ?fair value’ of share awards granted to employees. The charge will make some organisations look significantly less profitable.
The survey, involving 70 respondents, found that 64% were in favour of the standard and its application, while over a quarter (27%) agreed with expensing share-based payments in principle but not with the IFRS 2 approach.
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