Page 29 - Finac 1 - Topic 2 - 3. Share-Based Payment

SHARE-BASED PAYMENT

Deferred Tax on SBP(.43A ‐ .43D)

• Deferred Tax treatment of cash‐settled SBP is

straightforward

• Will get deduction once paid – therefore, Tax Base = 0

• Results in deferred tax asset on Temporary Difference

• Equity settled SBP

• If there are deductions, usually only on issuing shares

• Results in Temporary Difference
• No assets or liabilities recognized

• IAS 12 Rule:

• To extent estimated tax benefit < Cum SBP expense x 28%

• DT to P/L

• To extent estimated tax benefit > Cum SBP expense x 28%

• DT directly to equity
• Level 1

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