ICAI issues Guidance Note on Accounting
for Share - based payments
The Institute of Chartered Accountants
of India (ICAI) has released a Guidance Note on Accounting for Employee
Share - based Payments, which has come into effect from the 1st
of April 2005.
On December 16, 2004, The Financial
Accounting Standards Board (FASB) has issued statement Number 123
(revised 2004) - Share Based Payment. Statement 123 (R)
requires all entities to recognize compensation expense as per the
Fair Value Method.