UK: Share Schemes - Draft ICAEW Guidance on the Impact on Distributable Profits of Employee Share Trusts and Accounting for Share Based Payments

Last Updated: 4 August 2004
Article by David Pett and Lynette Jacobs

Originally published July 2004

Last month the English and Welsh Institute of Chartered Accountants (ICAEW) published a Technical Release (TECH 21/04) containing draft guidance concerning how changes to the accounting regime for employee share schemes affect companies' distributable and realised profits.

The Technical Release considered the implications of UITF 38 ‘Accounting for ESOP trusts’ and UITF 17 (revised 2003). UITF 17 will be replaced by the new Share Based Payment Standard FRS20 but the guidance set out in the Technical Release will also be applicable to that new Standard.

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