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.

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Definitions:

Nonlinear

Not arranged in a straight line or sequence; in storytelling or data analysis, it refers to a narrative or process that does not follow a direct or sequential path.

Time Constraints

Limitations or restrictions on the amount of time available to complete a task or project.

Frame of Reference

The context, perspective, or background from which a situation is observed and interpreted.

Indirect Approach

A communication method where the main point or message is not revealed immediately but rather introduced gradually in the communication.