SaaS
Phantom Share / LTIP Cash Accrual
Accruing a cash-settled long-term incentive plan for employees who are not eligible for equity.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| LTIP / Phantom Share Expense | Expense (+) | 5,000.00 | - |
| LTIP Liability (Accrued) | Liability (+) | - | 5,000.00 |
💡 Accountant's Note
Unlike equity-settled SBC, cash-settled schemes (phantom shares, SARs) are recorded as a liability at fair value each month. The liability grows until the payout date.
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