UK - Five institutional investor bodies have joined forces to press for timely international consensus on the treatment of share option accounting.
As members of the Institutional Shareholders’ Committee, the Association of British Insurers (ABI), Association of Investment Trust Companies (AITC), Association of Unit Trusts and Investment Funds (AUTIF), Fund Managers Association (FMA) and the National Association of Pension Funds (NAPF) have written to Sir David Tweedie, chairman of the International Accounting Standards Board (IASB), asking him to keep high on his list of priorities the need to achieve a single international accounting standard on share-based payment.
The five bodies had originally responded to the UK Accounting Standards Board’s (ASB) July 2000 discussion paper on share-based payment. The letter now expresses support for the ASB and IASB convergence agenda.
“We have taken this joint step to emphasise our belief that the transfer of value inherent in share options represents a cost which should be charged through the profit and loss account,” heads of the associations said.
“We therefore support the ASB and IASB position in this respect and are keen to ensure that this issue remains a priority on their convergence agenda.”
By Janet Du Chenne
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