IFRS Notes

Deferred tax from share-based payment


IAS 12-pr68A, B
Share-based payment

If the following is the case,
(1) Expense is recognised when employees provide service
(2) deducted for tax purpose when share options are exercised

then,
there is a deductible temporary difference,
and deferred tax asset is recognised


IAS 12-pr68C
If tax deduction > compensation expense

tax deduction = (3) + (4)
(3) tax deduction related to compensation expense
(4) tax deduction related to an equity item

(3) is recognised in profit or loss
(4) is recognised directly in equity