UITF Abstract 25 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

Provision should be made for National Insurance contributions on outstanding share options that are expected to be exercised using the latest enacted National Insurance rate applied to the difference between the market value of the underlying shares at the balance sheet date and the option exercise price. This should be allocated over the period from the date of grant to the end of the performance period. If there is no performance period full provision should be made immediately.

All amounts in respect of these National Insurance contributions should be charged to the profit and loss account.  

• Read UITF Abstract 25

Last updated 21 June 2015