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
Related Content
An ESOP Primer for Boards of Directors June 13, 2022
Contractors: Have You Considered ESOP as a Succession Plan? October 25, 2021
Celebrating Employee Ownership in October October 7, 2021
How Is the Annual Price of Your ESOP Shares Determined? August 27, 2021
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