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CE Credit Type generic cpe

Accounting for Leveraged ESOPs: Common Questions and Practical Solutions

Webinars November 10, 2026 9:30 am PT

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Continuing Education Credit Offered For Live Session Only: Generic, CPE

Webinar Details

Leveraged ESOPs can create complex accounting questions for privately held companies, particularly when debt structure, share release schedules, compensation expense, plan contributions, distributions, and repurchase activity intersect. This session will provide a practical overview of common leveraged ESOP accounting issues, including how to record the initial ESOP transaction, how share release mechanics affect compensation expense, and how changes in loan payments can impact future accounting. The discussion will also address common ESOP financial statement disclosures, the differences between plan contributions, dividends or S corporation distributions, participant distributions, and the accounting considerations when participants leave an ESOP.

LEARNING OBJECTIVES:

After attending this session, participants will be able to:

1. Explain the basic accounting model for a leveraged ESOP transaction, including external debt, internal ESOP debt, and the unearned ESOP shares balance.

2. Identify how share release schedules affect ESOP compensation expense and understand the accounting impact of principal and interest payments.

3. Distinguish between employer contributions, C corporation dividends or S corporation distributions, and ESOP participant distributions.

4. Recognize common ESOP financial statement disclosure considerations, including emerging discussion points related to repurchase obligations

5. Evaluate common accounting considerations when a participant exits an ESOP.

Webinar Slides

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Webinar Replay

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Presenters

Zach Kubly

Zach Kubly is a director in Katz, Sapper & Miller's Business Advisory Group. Experienced in federal and state tax matters, Zach works with clients in a wide range of industries, including agriculture, manufacturing, distribution, and transportation. Zach helps clients minimize tax liabilities and plan for future opportunities. He provides consulting services to clients of various sizes “ from small businesses to large corporations “ and equips them with the advice they need to make timely, accurate, and educated business decisions. Prior to joining KSM, Zach spent six years at a Big Four firm serving midsized companies and five years with local firms working with small businesses and their closely held owners.

Andy McNeely

Andy McNeely is a director in KSM’s Audit & Assurance Services Group. Andy works with clients to help them minimize risk, maximize efficiencies, and ensure accurate financial reporting. He serves a wide variety of businesses and industries, with an emphasis in construction. Andy also has experience in corporate accounting and not-for-profit service, having previously worked for a professional development company and campus ministry.

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Presenters

Zach Kubly

Andy McNeely

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