Under IFRS 2 and SFAS 123, accounting standards concerning share-based payment, stock options and similar forms of remuneration must be reported at fair value in the balance sheet. Fair value in this case is to be allocated as staff expenses over the vesting period. The fair value of stock options must be calculated using a option-pricing model based on established principles of financial economic theory.

FIRICON offers you the following services for your incentive program:

• Consulting service for designing and drawing up a stock option plan
• Fair value calculations for stock options and similar forms of remuneration in accordance with IFRS 2 and SFAS 123 using a binomial model or Monte Carlo simulation while taking into account employees´ expected early exercise behavior
• Performing the function of an investigating agency for virtual equity instruments