Under IFRS, a Deferred Tax Asset for Stock Options

question 118

Multiple Choice

Under IFRS, a deferred tax asset for stock options:

• A) Is created for the cumulative amount of the fair value of the options the company has recorded for compensation expense.
• B) Is the portion of the options' intrinsic value earned to date times the tax rate.
• C) Is the tax rate times the amount of compensation.
• D) Isn't created if the award is "in the money;" that is, it has intrinsic value.

---

Definitions:

Sales Orientation

A business approach that prioritizes selling products and services over understanding or meeting the actual needs and desires of the customers.

Salesperson

A salesperson is an individual who sells goods or services to customers, often working on behalf of a company to facilitate transactions and promote sales.

Wise Customer

A term reflecting a customer who is informed, discerning, and judicious in their purchasing decisions, often seeking value and quality.

Personal Selling

A sales method involving direct face-to-face communication between a salesperson and a potential buyer.