Address: 433 Plaza Real, Suite 275, Boca Raton FL 33432 | Phone: 561-852-8000 | Email: info@fassolutions.com

Accounting for ESPP

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.