Accounting Mechanism of Employee Stock Options in India: A Case Study of Wipro Limited, an IT Service Provider Company in India
Journal Title: International Journal of Management, IT and Engineering - Year 2017, Vol 7, Issue 7
Abstract
Employee Stock Option Plans (ESOPs) are the plans under which employees are given a right not an obligation to purchase a certain number of shares in the company at a predetermined price on fulfillment of certain conditions and based on performance criteria such as such as vesting period, nature of employment, seniority, number of years of service with the company or a judicious mix. On vesting, the employees are given shares of the company at a discounted price to the market price at the time of exercise. Many companies in India have now started giving Employee Stock Options as this is beneficial to both the employer as well as the employee. In India IT companies pioneered the ESOPs concept to retain and reward their senior management. In the present study an attempt was made to study ESOPs in general and ESOPs in an IT company “Wipro Ltd” in particular. This study discussed accounting practices followed in Wipro Ltd in regard to ESOPs and measured effect of ESOPs on income statement, Earning per share, cash flow statement and Balance sheet and found that net income of the company decreased due to amortization of stock based compensation expense, Earning per share diluted, inflows from financing activities increased, paid up share capital increased and owners’ equity diluted on exercise of stock options.
Authors and Affiliations
Dr. Rupinder Katoch
Keywords
Related Articles
- EP ID EP18801
- DOI -
- Views 296
- Downloads 10
BIANCHI TYPE-I COSMOLOGICAL MODELS WITH VARYING COSMOLOGICAL TERM-
In this paper, we investigate variation law for cosmological constant in the background of anisotropic Banchi type I space-time. We consider a particular form of cosmological term as = R / R , where R is a aver...
M-COMMERCE: SECURITY CHALLENGES ISSUES AND RECOMMENDED SECURE PAYMENT METHOD
As mobile technologies and services are in stable development, many wonder on whether or not mobile payments will be a destroyer function for mobile commerce. To have an improved considerate of the market, presently th...
An Exploratory Study on Leadership Blind Spots; A Leadership Perspective
Leadership Blind Spots means, not or unable to see beyond his/her vision by a leader. Those who aspire to become an entrepreneur, a professional in any field, a manager or a leader who has a vision will have to take th...
WHY INDIA DEMANDS INCLUSION OF PETROLEUM PRODUCTS UNDER GST?
Goods and Service Tax (GST) is a comprehensive tax levied on manufacturing, sales and consumption of goods and services at a national level, introduced in India from 1st July 2017 which subsumed all indirect taxes levi...
slugSec.AODV for MANETs using MD5 with Cryptography
Mobile Ad hoc Networks (MANETs) characteristics present major vulnerabilities in security. The threats which thought-out in MANETs are due to maliciousness that intentionally disrupts the network by using variety of at...