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a deferred tax asset will arise which represents the difference between a tax base of the employee’s services received to date and the carrying amount which will effectively normally be zero.????? why zero ?
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im also still confused abt that..im looking for IAS is there any changes in it realting to tax or any detail explanation…as BPP statement is not cleared and workings r very problamatic…
Hi madiha and ammadoo
I am sharing a link with you just go through this article.. this can help you..
https://www2.accaglobal.com/members/publications/accounting_business/CPD/2539654
Read this article and come back if you want to discuss further..
Carrying amount is taken ZERO, because tax is levied on cash basis and there in no cost of cash in share based payment.. that is why carrying amount is normally taken as ZERO 🙂
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Hi,
tax is levied on the date when right is vested and the cash is actually paid, so before that date, the tax base of any share based payment is zero. therefore there will be difference between the tax base and the carrying amount, so will arise the deferred tax asset.
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