SAP will start considering share-based compensation as a regular expense in the new year, part of changes to the software company's financial reporting practices it said were aimed at increasing the transparency of its operating results.

The Walldorf, Germany-based group said Monday that it would include share-based compensation expenses in its non-IFRS results starting Jan. 1, meaning the move will initially affect SAP's first-quarter results to be reported on April 22. SAP's 2023 results won't reflect the change, but guidance for the new year--expected to come Jan. 24--will factor in the new accounting, which could also feed into potential updates of its 2025 targets. READ MORE