Nordis SA has granted employee options whose exercise will give rise to a future tax deduction. At the closing date, the intrinsic value of all the options is 900,000 and the vested share is 50 %; the expected tax deduction is computed on the intrinsic value multiplied by the vested share (case convention). The cumulative expense recognised is 360,000 and the tax rate is 25 % (case data). Compute the deferred tax asset and the part of the tax effect taken directly to equity.
- Intrinsic value of all the options, at the closing date
- 900,000
- Vested share of the vesting period
- 50 %
- Cumulative expense recognised
- 360,000
- Tax rate (case data)
- 25 %