Implications of FASB Statement 123(R) on Expensing
of Stock Option Awards and Companies Incentive
Compensation Strategies

On December 16, the Financial Accounting Standards Board (FASB) introduced a new accounting standard that significantly changes the rules governing equity-based compensation. FASB Statement No. 123 (Revised 2004), Share-Based Payment, requires companies to recognize in the income statement the grant-date fair value of stock options and other equity-based compensation. This article reviews the accounting rules outlined in Statement 123(R), as well as the current accounting rules. It also highlights how the accounting rule changes will result in fundamental changes in equity compensation programs for most companies.
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Employer Private Pension Contributions in Russia—When Is Unified Social Tax Due?

The question of when Unified Social Tax (UST) in Russia is payable in relation to employer contributions, made to a solidarity account, within the operation of a NSPF is complex. According to Alevtina Borisova and Alice Sidorow with KPMG in Russia, careful analysis of the structure and administration of these types of accounts is essential in order to fully ascertain timing of liability to UST. They discuss how recent court cases
fill the gaps in legislative guidance on employee benefits subject to employer UST.
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Executive Compensation Developments in the United Kingdom

This report from our People Services practice in the United Kingdom covers a range of developments in the U.K. concerning the determination of, accounting for, and payment of employee compensation. Read this article and learn about deferred bonus plans; the impact of the recent International Financial Reporting Standard 2 on company accounting practices; and the tricks and traps of making share-based awards to mobile employees.
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France: Labor and Health Law Developments Affecting Expatriates and Their Multinational Employers

This report from France covers sundry developments in the labor law and health law areas. Learn about what's happening with the European Health Insurance Card; social security filing obligations for employers not established in France; and which country has the jurisdiction to settle disputes related to contracts... and more!
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Worldwide Digest

We are providing readers with a link to the IES practice's Flash International Executive Alert newsletters, which are archived right through the most recent issue on the IES Web site. Readers can scan the titles and select the news stories that are most relevant to their international assignment situations.
Go to IES practice's Flash International Executive Alert newsletters