The company explained that IFRS 2 is the portion of the
International Financial Reporting Standards that specifically addresses the
expensing of equity compensation granted by companies. While a decision by the
SEC that would mandate U.S.-based companies to adhere to IFRS is not expected
until 2011, some companies already have statutory IFRS reporting obligations , and a growing number are evaluating how they might proactively meet the
standards, according to a Schwab press release.
Schwab EquiView’s new reporting functionality includes
valuation, expense, and disclosure reporting. It is fully integrated into the
overall Schwab EquiView application, which keeps financial reports up-to-date
with the latest employee award and transaction data.
To compare impact to expense and tax accruals and better
plan and prepare for a shift to IFRS, corporate stock plan administrators can
also simultaneously create reports under both IFRS and the existing Financial
Accounting Standards (FAS 123R) they use , the announcement said.
According to a recent Schwab-commissioned study of 200
corporate stock plan decision makers, 36% of participating companies report
that they are currently meeting IFRS for all employees. Of the firms reporting
that they are not yet meeting the international standards for all employees, 44%
say they plan to fully meet the international standards by 2011, and 60% say
they’ll be in full compliance by 2012. Seventeen percent say they will meet the
standards when they actually go into effect.
The enhancements to Schwab EquiView are designed for companies,
which already have an IFRS reporting obligation, such as U.S.-based companies
with international subsidiaries, and for companies which are in the process of
determining how and when they will adopt the standards.