Equity Value has established a proven framework for our service of assisting companies to meet their FRS 20 responsibilities.  This framework will be flexed to meet individual client’s needs but the basic stages of the process are as follows.

Diagnostic

We establish whether the company has a disclosure requirement under FRS 20 for the accounting period in question, and also consider which share-based payments must be disclosed.  This stage involves an exploratory meeting with the directors and a detailed review of the terms of all share based payments provided over a relevant historical period.

Establish the Fair Value of the Share Based Payments

Given the terms of the payments, we then decide on which pricing model is most appropriate. We pay detailed consideration to any relevant assumptions and then apply the assumptions and pricing model to the relevant share based payments.  The result is a well thought out fair value, which we benchmark against other comparable fair values.

Prepare the Disclosures

We review the period over which relevant services are consumed and produce detail of a) the requisite charges to the profit and loss account b) how the balance sheet is affected and c) relevant notes to the accounts.

Provide Report and Relevant Discussion