Mobility Tracking and Your Equity Award Accounting

Takis Makridis Xiao Yu

Tracking and managing employee mobility has become very important over the last ten years. However, most of the energy has focused on correctly handling the employee’s tax situation, and little has been said about the impact on corporate financial reporting and taxation.

In this issue brief, we discuss how employee mobility influences US GAAP and IFRS financial reporting, complicates internal management accounting, and makes it tougher for the legal entities within a firm to claim tax deductions. The solution is to track mobility in a granular way and make sure it’s reflected in all facets of tax and financial reporting.

This issue brief, the first in a broader series, delves into cases on employee mobility and why simplistic tracking techniques may undermine the quality of external and internal reporting.

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