{"id":9040462,"date":"2026-01-28T07:00:09","date_gmt":"2026-01-28T07:00:09","guid":{"rendered":"https:\/\/www.gremicat.es\/?p=9040462"},"modified":"2026-01-27T10:32:33","modified_gmt":"2026-01-27T10:32:33","slug":"extraordinary-remuneration-for-employees-and-executives","status":"publish","type":"post","link":"https:\/\/www.gremicat.es\/en\/extraordinary-remuneration-for-employees-and-executives\/","title":{"rendered":"Extraordinary remuneration for employees and executives"},"content":{"rendered":"\t\t
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Many companies pay bonuses or incentives without knowing that the expense must be recorded before payment. We explain how to do it right and avoid mistakes. Clear and well-documented accounting saves problems. We help you review your extraordinary payments before the end of the year.\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Every year, many companies give bonuses, gratuities, or special payments to their employees or managers. They are a way of recognizing effort, rewarding results, or compensating for specific achievements. So far, so good. The problem arises when it comes to recording them correctly in the accounts.<\/span><\/p>

The Institute of Accounting and Account Auditing (ICAC) has published a new clarification (BOICAC 143, October 2025) on how to record these payments. The main idea is simple: the expense is recorded when it is approved, not when it is paid.<\/span><\/p>

If the company decides in December to pay a bonus in June, the expense is in December, not the following year.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What does this mean in practice?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Imagine that in April your company approves a special bonus for the team for the good results of the year, and you decide to pay it when the accounts are approved. Even though the money comes out months later, the expense must be recorded in the year of the agreement, because that is when the employee’s entitlement arises.<\/span><\/p>

The same applies to executives or directors who receive special remuneration for achieving objectives or closing an important deal: the expense is generated at the time the incentive is officially approved, not when it is paid.<\/span><\/p>

The tax authorities and auditors do not look at \u201cwhen it is paid,\u201d but \u201cwhen the company committed to paying it.\u201d<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What about incentives linked to shares or equity?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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In some cases, especially in companies with key executives or partners, incentives are linked to the value of the company’s shares or to a profit-sharing plan.<\/span><\/p>

In such cases, the accounting treatment is different: the company must record the expense as the employee earns the right to it and adjust the value based on how the shares or results evolve.<\/span><\/p>

It is not necessary to know the exact accounting rule; it is enough to understand that these plans must be carefully reflected, because they directly affect the results and can be revised each year until they are paid.<\/span><\/p>

If your company has incentive plans, options, or bonuses linked to the value of the company, it is advisable to review them with an advisor before the end of the fiscal year.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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If a mistake was made when recording the expense\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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If the company did not correctly account for the bonus or incentive at the time, it must be corrected retroactively: that is, adjust the accounts for the fiscal year to which it belongs and make a clear note of it in the financial statements. It is not serious if done in time but ignoring it can <\/span>lead to subsequent requirements or adjustments.<\/b><\/p>

Many errors are discovered when an audit or even an inspection takes place. Correcting them intime is much easier (and cheaper).<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How to do it right from the start?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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