You've completed your ESOP transaction, but what's next regarding accounting and reporting? This interactive session will guide you through the accounting processes for an ESOP transaction, both initially and on an ongoing basis, according to Generally Accepted Accounting Principles. We'll delve into how to account for aspects like share releases, warrants, and Stock Appreciation Rights. Additionally, we'll discuss how financial statement users, including lenders, scrutinize these statements post-ESOP to assess and determine financial covenants. Join us to gain practical insights into the financial reporting implications of your ESOP transaction.
Learning Objectives:
Understand potential GAAP entries needed to book an initial ESOP transaction.
Replicate the annual entries associated with ESOP shares released and the change in value of any synthetic equity.
Identify the changes to financial reporting convents under GAAP ESOP accounting.