IFRS10 (the new International Accounting Standard) comes into force for accounting periods beginning on or after 1 January 2013.  It has potential  implications for the accounting treatment of EBTs.  We are preparing a separate note on the implications of IFRS10 and other proposed changes to share schemes accounting.

Over the last year or so, share price volatility has fallen generally. Interest rates on gilts have continued at unprecedentedly low levels.  Both factors have a major impact on the Share Based Payment accounting charge calculated using Black Scholes or other forms of option pricing theory, and lower volatility and interest rates may now justify lower accounting charges.