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Impact of fair value on esop on transition should i calculate deffered tax on this transition?


Want to know whether Deffered tax to be calculated on esop charged to reserve.

asked Aug 24 in IFRS 2 - Share-based Payment by Pawan
what is esop??
Employee share ownership plan?

1 Answer

0 votes
This is termed as Employee Stock Ownership Plan under which a company facilitates an employee to invest in shares of the company according to the contribution by him. When this amount of ESOP is transferred to reserves of the company it is then treated as normal income or assets of the company. The overall tax impact on this amount will be calculated in line with the tax calculation on a yearly income of the company. However; no separate deferred tax is applied on this amount
answered Nov 7 by Finance Professional Level 2 Member (3,680 points)


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