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qs–oak dec 2011

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › qs–oak dec 2011

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • November 23, 2016 at 10:49 am #350931
    adurich
    Member
    • Topics: 127
    • Replies: 120
    • ☆☆☆

    ..share based payment plan should have a deffered tax consequence —a deffered tax asset arises due to the deductible temporary difference arising from the accounting treatment….(oak answer dec 2011)

    can u please explain the point ,,why do we record a defered tax asset for shares option

    November 23, 2016 at 1:18 pm #350951
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    Because we’re having to pay tax today whereas the option will not be exercised for a number of years into the future

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