Apple berhad is a Malaysian listed company, engages in the entertainment services. In order to ensure that the services provided to the customers are at a high quality, Apple Berhad needs to retain the talented employees. Therefore, Apple Berhad is granting 150,000 share options to the employees on 1 January 2016.

The options will vest at the end of year 2017 and are exercisable from beginning of year 2018. Fair value of the option was RM16. The tax rate is 24% for all years.

The intrinsic value per option is as follows

Year 2016

Intrinsic value per option = RM10

year 2017

Intrinsic value per option = RM18

REQUIRED:

In compliance with the MFRS 2: Share-based payments, measure the deferred tax liability or asset for year 2016 and 2017

Answer rating: 100% (QA)

1Calculation of Share option expense for each year in light with the MFRS2 SHARE ... View the full answer