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“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?
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.
But why do we really do that?
Thanks for ur time.
I’d presume it is to do with matching the expense for the share based payment to the other remuneration expense.