Repurchase Obligation and Accounting: No Change in Offing

Speaking at a recent NCEO Webinar, Rebecca Miller of McGladrey & Pullen said that the Financial Accounting Standards Board has shelved its project on whether the ESOP repurchase obligation should show up as a liability on the balance sheet. The proposal caused a considerable stir in the ESOP community a few years ago. Miller, widely considered the leading expert on accounting for ESOPs, said that the FASB had shelved the project as part of its ongoing effort to meld U.S. and international accounting. Given that no other country has ESOPs, having a separate standard for ESOPs could be challenging. So don't expect any new requirements on this issue any time soon, if ever.