The Urgent Issues Task Force (UITF) has issued a proposed amendment to Abstract UITF 17 on employee share schemes to clarify the exemption for SAYE and similar schemes. UITF 17 requires a charge to be made to the profit and loss account where share options (or shares) are issued to employees at an exercise price less than the market price of the shares at the date of grant. However, grants under SAYE schemes are currently exempt from this requirement (although a charge may be made). The UITF has been reconsidering the scope of this exemption in the light of the introduction of new types of share scheme.
Copies of the proposals are available from ASB, Holborn Hall, 100 Gray's Inn Road, London, WC1X 8AL or on www.asb. org.uk/ publications/publication280.html KPMG