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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.