Under U.S. GAAP, the deferred tax recorded on share-based compensation is computed on the basis of the expense recognized in the financial statements for awards that ordinarily give rise to a tax deduction. Therefore, changes in an entity’s share price during the vesting period do not affect the DTA recorded on the entity’s financial statements.
Confidential and Proprietary — for Use Solely by Authorized Personnel
This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.