NCEO Webinar: Accounting for Leveraged ESOPs: Common Questions and Practical Solutions

Accounting for a leveraged employee stock ownership plan (ESOP) can be complex, particularly when managing debt payments, share releases, compensation expense, and participant distributions.

Join KSM’s Zach Kubly and Andy McNeely for an upcoming webinar with the National Center for Employee Ownership (NCEO) as they explore common accounting questions and practical solutions for leveraged ESOPs. They’ll discuss how ESOP transactions are recorded, how share releases and loan payments affect accounting, and key considerations related to financial statement disclosures, distributions, repurchase obligations, and participant exits.

Learning Objectives

Participants will learn how to:

• Understand the basic accounting model for leveraged ESOP transactions, including external and internal debt and unearned ESOP shares
• Recognize how share release schedules and loan payments affect compensation expense and financial reporting
• Distinguish between employer contributions, corporate dividends or S corporation distributions, and participant distributions
• Identify common financial statement disclosure considerations, including those related to repurchase obligations
• Understand key accounting considerations when participants exit an ESOP

This webinar is presented in partnership with the National Center for Employee Ownership (NCEO) as part of the NCEO’s employee ownership virtual learning series. NCEO members may register for the webinar at no cost. If you are not an NCEO member, you may join the organization for a nominal fee to gain access to the webinar and other NCEO member benefits.