1, Which of the following statements about the accounting for a deferred tax asset for stock options are true?

A. Under both U.S. GAAP and IFRS, a deferred tax asset (DTA) is created for the cumulative amount of the fair value of the options the company has recorded for compensation expense.

B. Under both U.S. GAAP and IFRS, this deferred tax asset isnt created until it has intrinsic value.

C. Under IFRS, when this deferred tax asset is in the money, the addition to the DTA is the portion of the intrinsic value earned to date times the tax rate.

D. Under U.S. GAAP, this deferred tax asset equals the tax rate times the amount of compensation.

Question

1, Which of the following statements about the accounting for a deferred tax asset for stock options are true?

A. Under both U.S. GAAP and IFRS, a deferred tax asset (DTA) is created for the cumulative amount of the fair value of the options the company has recorded for compensation expense.

B. Under both U.S. GAAP and IFRS, this deferred tax asset isnt created until it has intrinsic value.

C. Under IFRS, when this deferred tax asset is in the money, the addition to the DTA is the portion of the intrinsic value earned to date times the tax rate.

D. Under U.S. GAAP, this deferred tax asset equals the tax rate times the amount of compensation.

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Question

1, Which of the following statements about the accounting for a deferred tax asset for stock options are true ? A. Under both U.S. GAAP

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