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.
