Employee Stock Purchase Plans are a great benefit to employees at many of our client companies. However, calculating and amortizing the expense for even an apparently straight-forward six-month ESPP plan can involve some complexity. When one considers modification accounting for participant contribution increases, resets and rollovers, ESPP plans can create a maze of spreadsheet calculations that are error-prone which can create risk for a company.
FAS Solutions can ease your way through the complexities of accounting for these plans, from calculating grant-date fair value using the three required components to amortizing expense and calculating incremental expense for modifications. FAS Solutions can even assist with the necessary tax accounting for 423-qualified plans for dispositions and the impact on your diluted EPS.