Charles Schwab Makes International Financial Reporting Standards Functionality Available for Corporate Stock Plan Administrators

Monday, December 7, 2009 9:00 am PST



Public Company Information:

"Highest in Investor Satisfaction with Self-Directed Services"

SAN FRANCISCO--(BUSINESS WIRE)--As more U.S. companies look to adopt the International Financial Reporting Standards (IFRS), Charles Schwab has added industry-leading fully-integrated IFRS 2 reporting functionality into its Schwab EquiView® record-keeping system for corporate stock plan clients. IFRS 2 is the portion of the International Financial Reporting Standards that specifically addresses the expensing of equity compensation granted by companies. While a decision by the SEC that would mandate U.S.-based companies to adhere to IFRS is not expected until 2011, some companies already have statutory IFRS reporting obligations today, and a growing number are evaluating how they might proactively meet the standards.

Schwab EquiView’s new reporting functionality is a complete solution for IFRS 2 reporting including valuation, expense, and disclosure reporting. The new functionality is fully integrated into the overall Schwab EquiView application, which keeps financial reports up-to-date with the latest employee award and transaction data. To compare impact to expense and tax accruals and better plan and prepare for a shift to IFRS, corporate stock plan administrators can also simultaneously create reports under both IFRS and the existing Financial Accounting Standards (FAS 123R) they use today.

According to a recent Schwab-commissioned study* of 200 corporate stock plan decision makers, 36 percent of participating companies report that they are currently meeting IFRS for all employees. In addition, of the firms reporting that they are not yet meeting the international standards for all employees, 44 percent say they plan to fully meet the international standards by 2011 and 60 percent say they’ll be in full compliance by 2012. Seventeen percent say they will meet the standards when they actually go into effect.

“While the majority of U.S. companies may not be required to adopt IFRS in the near-term, a growing number of companies are either already required to meet the standards or are thinking about proactively complying,” said Larry Bohrer, Charles Schwab Stock Plan Services vice president. “We incorporated IFRS 2 functionality into our Schwab EquiView system for those companies that have to meet the international rules now or are looking to stay ahead of the curve.”

The enhancements to Schwab EquiView are designed for companies which already have an IFRS reporting obligation, such as U.S.-based companies with international subsidiaries, and for companies which are in the process of determining how and when they will adopt the standards.

“Companies today are managing multi-country workforces in order to remain competitive both globally and here in the U.S.,” added Bohrer. “For these companies, transitioning to IFRS for their equity compensation plan is more than a nice to have – it is a must.”

Additional information about Charles Schwab Stock Plan Services is available at

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants, 687,000 banking accounts, and $1.3 trillion in client assets as of Oct. 31, 2009. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Named "Highest in Investor Satisfaction with Self-Directed Services" by J.D. Power and Associates in 2009, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at (1209-12004)

Charles Schwab & Co., Inc. does not provide tax, compliance or legal advice.

* In September 2009, Koski Research conducted an online survey and gathered a total of 200 responses from stock plan decision makers at public companies ranging from $25 million to more than $50 billion in revenue. Respondents work for companies in a broad cross-section of industries with the manufacturing, technology, and financial services industries particularly well represented. Koski Research is not affiliated with Schwab.


Charles Schwab
Michael Cianfrocca, 415-667-0344

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