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Accounting Basics for Your ESOP's First Year

The first year of an employee stock ownership plan’s (ESOP) existence can be particularly tricky. It’s a learning experience for everyone in your business as you go through the accounting and valuation cycle of this new entity for the first time. This guide is designed to help explain how the concepts that were discussed when your ESOP was planned and created translate into first year contributions, journal entries, and the annual valuation.

Key topics covered include:

  • The post-ESOP balance sheet
  • Annual funding of the ESOP
  • Accounting for the ESOP plan and trust
Andy Manchir Partner, Business Valuation & ESOP Services

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