A Crash Course in ESOP Accounting, Financial Reporting, and Banking Covenants

This session is crafted for CFOs and controllers who are currently or have recently overseen a sale to an employee stock ownership plan (ESOP) and need a deeper understanding of its financial reporting implications.
We’ll walk through the key example journal entries associated with the transaction, including both initial and recurring entries tied to ESOP share releases and synthetic equity. Attendees will gain clarity on the timing and rationale behind changes to required banking covenants. Special attention will be given to an example ESOP transaction, equipping financial leaders with examples needed to guide their teams and stakeholders through the complexities of ESOP accounting.

NCEO Publication: Accounting for Leveraged ESOP Transactions
NCEO Peer Networking: ESOP Finance Peer Network