Accounting Standards Board UITF Abstract 38 Accounting for ESOP trusts

摘要

1. This Abstract supersedes UITF Abstract 13 'Accounting for ESOP trusts' (issued on 8 June 1995). 2. Abstract 13 addressed: (a) the nature and extent of the sponsoring company's assets and liabilities that should be recognised under employee share ownership plans (ESOPs); and (b) the timing of expense recognition under such arrangements. 3. This Abstract addresses issue (a) above.The principal change from Abstract 13 concerns the treatment of an interest in an entity's own shares arising through an ESOP trust. Abstract 13 required that such shares should be recognised as assets of the sponsoring entity. This Abstract reflects the principle in UITF Abstract 37 'Purchases and sales of own shares', which is consistent with International Financial Reporting Standards (IFRSs), that an entity that reacquires its own equity instruments should present them as a deduction in arriving at shareholders' funds rather than as assets. 4. This Abstract does not include any requirements concerning the recognition of the cost of awards to employees that take the form of shares or rights to shares. Those accounting requirements are dealt with in UITF Abstract 17 'Employee share schemes', which is amended by this Abstract.