At MizaanTech, our mission is to assist publicly listed companies meet their accounting obligations.
Our approach is to harness technology to maximise efficiency, and simplify process.
Phase 1 of our strategy focuses on the simplification of obtaining fair values for share based payments in accordance with the IFRS2 accounting standard.
Fair Value CalculatorPublicly listed companies typically operate incentive schemes whereby employees are rewarded in share based payments. These schemes fall under the IFRS2 accounting standard.
The standard provides guidance on how to recognise the expense of these schemes.
In order to recognise an expense for such a payment, a fair value per share must be calculated that takes into account the features of the scheme. Depending on the structure of the scheme, the calculation of the fair value can be an extremely complex process, and companies typically outsource this calculation to a specialist third party.
With the help of our online application, companies no longer need to resort to third party support.
Clients can easily define the structure and operation of the schemes through an intuitive user interface, and at the click of a button, the application can automatically:
• Select an appropriate model in accordance with IFRS2 to calculate the fair value
• Determine a set of intermediate assumptions depending on the model selected
• Source the appropriate market data from a reputable data provider
• Provide an initial set of assumptions and fair value per award
At this point the user has an opportunity to review the assumptions, and has the option to manually override the calculated assumptions, prior to generating a final report, setting out the following:
• The models used and the reason for their selection
• The assumptions and how these have been derived
• The features of the scheme
• The fair value