Accounting for employee stock options
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University of Cape Town
The use of ESOs as a form of employee remuneration has grown dramatically in recent years, fuelling a significant amount of research. The current accounting standards (IFRS 2 and IAS 33) do not reference this research and as a result the accounting records do not accurately reflect the economic nature of these transactions. This study will: 1. Evaluate the requirements of IFRS 2 and IAS 33 by developing an accounting model for each standard and comparing the current rules with this theoretical benchmark. 2. Further examine any identified differences by means of empirical tests. The objective is thus to establish a theoretically sound approach to ESO accounting that can be confirmed by empirical testing.
Van Zyl, W. 2010. Accounting for employee stock options. University of Cape Town.