An employer must recognize compensation expense based on the vested balance credited to each individual's account. Any appreciation in the value of the account increases the employer's liability, and consequently requires a further recognition of expense.
Depreciation has the opposite result.
See, by contrast, the special accounting treatment available for deferred shares . This site provides general information for reference purposes only, and should not be relied upon in any respect. Users should consult with their legal counsel in order to assure thorough and proper application of the complex rules that are highlighted here.