FRSIC ORGANISED A TALK ON EMPLOYEE SHARE OPTIONS SCHEME (ESOS) VALUATION

On 16 April 2008, the Financial Reporting Standards Implementation Committee (FRSIC) organized a talk on Employee Share Options Scheme (ESOS). There was a full turnout by invitees.

A full turnout by the invitees.

The talk was complimentary to individuals who had participated as members of FRSIC Working Group in the past. The main objective of the talk is to share current issues and development regarding ESOS with particular focus on valuation techniques and accounting treatment.

The speaker, Mr. Hugh J Osburn.

The speaker, Mr. Hugh J Osburn, is a highly qualified and experienced expert in valuation. He is a fellow of the Chartered Institute of Management Accountants, UK and an Associate of the Institute of Investment Management & Research, UK. He is an accredited senior appraiser and also a member of the American Society of Appraisers. He was the Vice President of the International Financial Appraisal division within an international valuation consultancy.

Mr. Osburn explaining about ESOS valuation.

Mr. Osburn shared his profound experience about practical ways to use meaningful input in ESOS valuation. The 2 hours session covered pertinent areas on variables used in ESOS valuation such as expected volatility of share price, number of employees, resignation of employees prior to options vesting, forfeiture of options, market-based conditions, non-market-based performance conditions and so on.

Invitee from Tenaga Nasional Berhad sharing her experience on ESOS valuation.

Practical examples were used to demonstrate the effect of using different variables and scenarios. The talk ended with a questions and answers session. The participants expressed their gratitude and satisfaction that FRSIC had organized such an informative talk.