CERTYNEX IFRS ACADEMY

In Hollivane's country, the tax law (case data) caps the tax deduction for a share plan at the remuneration expense recognised. At the reporting date, the estimated future deduction is therefore equal to the cumulative expense of 300,000; rate 25%, recoverable asset. Where does Hollivane recognise the tax effect of 75,000?

Entirely in equity, the plan being settled in equity instruments.

Half in profit or loss and half in equity, by convention.

Entirely in profit or loss, for lack of any excess of the deduction over the cumulative expense.

In other comprehensive income, until the options are exercised.