Blackwell Reference Online

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Employee compensation can be either short term or long term. Professional guidance is provided by the International Accounting Standards Board (IASB) in International Accounting Standard (IAS) 19 (Revised, 2002) , “Employee benefits,” and in International Financial Reporting Standard (IFRS) 2, “Share‐based payment” (2004). IAS 19 covers all types of employee benefits. It includes accounting for pensions and other post‐retirement benefits, but does not address the measurement and recognition of share‐based compensation (SBC). This is addressed in IFRS 2. Employee benefits paid within one year of the accounting period in which services are rendered are classified as short term and those falling due for payment more than one year after the period are classified as long term. Accounting for SBC is the main focus of this section. It is the case, however, that an important feature of accountability is the disclosure and governance requirements relating to directors' remuneration, particularly those for SBC. In the UK, these are set out in the Combined Code on Corporate Governance (2003), compliance with which is a requirement of the Listing Rules for UK listed companies, and in the statutory disclosure requirements of the UK Companies Act (SI 1997/570). The relevant overarching accounting principles are the accruals assumption and the definition of assets, liabilities, and equity as ... log in or subscribe to read full text