Alan Brown asks in the P2 forum about Deferred Tax and the implications of such on share-based payments.

Where certain jurisdictions allow a deduction for tax purposes in respect of a share-based payment transactions then it is highly unlikely that the amount of the tax deduction will equal the amount charged to the statement of comprehensive income under IFRS 2 because quite often the tax deduction is based on the share option’s intrinsic value - which is the difference between the market price and the exercise price of the share option. 

When dealing with deferred tax implications on such transactions, it is likely that a deferred tax asset is going to arise to represent the difference between the tax base of the employee’s service rendered to date and the carrying amount in the financial statements - which is usually zero.

IAS 12 says that a deferred tax asset can only be recognised if the entity has sufficient future taxable profits against which it can be offset.

Note - for cash-settled share-based payments, IFRS 2 requires the estimated tax deduction to be based on the current share price, thus all tax benefits received or expected to be received are therefore recognised in the statement of comprehensive income.