CERTYNEX IFRS ACADEMY

For its share option plan, Estriva recorded at the reporting date: debit deferred tax asset 96,000, credit deferred tax income 96,000. Data: estimated future deduction 480,000, cumulative remuneration expense 400,000, rate 20%, recoverable asset. Where is the error?

The amount of the asset: it should have been 400,000 × 20% = 80,000.

The principle: no asset is recognised before the options are exercised.

The rate: the deduction must be taken at 100%, with no tax rate.

The split: 16,000 relating to the excess should have gone to equity, only 80,000 to profit or loss.