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Deferred tax on share based payment

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Deferred tax on share based payment

Viewing 4 posts - 1 through 4 (of 4 total)
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  • May 30, 2018 at 7:01 pm #454928
    rihaam
    Member
    • Topics: 53
    • Replies: 37
    • ☆☆

    “Where the amount of the estimated future tax deduction exceeds the accumulated remuneration expense, the tax deduction relates partly to the remuneration expense and partly to equity.”

    Can u help me understand the logic behind this?

    Thanks.

    May 30, 2018 at 10:10 pm #454981
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6460
    • ☆☆☆☆☆

    Hi,

    It is saying that the movement in deferred tax on the share based payment is split and taken to profit or loss first and then the excess to reserves.

    Thanks

    May 30, 2018 at 10:30 pm #454989
    rihaam
    Member
    • Topics: 53
    • Replies: 37
    • ☆☆

    But why do we really do that?

    Thanks for ur time.

    June 2, 2018 at 9:07 am #455431
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6460
    • ☆☆☆☆☆

    Hi,

    I’d presume it is to do with matching the expense for the share based payment to the other remuneration expense.

    Thanks

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