Share based compensation

Question 1

Settlement date share price > Grant date share price

Answer 1

Tax windfall

IFRS: Gain recognized in shareholder equity (Balance sheet)
GAAP: Decrease in tax expense (Income statement)

Question 2

Settlement date share price < Grant date share price

Answer 2

Tax Shortfall

IFRS: loss recognized in shareholder equity (Balance sheet)
GAAP: Increase in tax expense (Income statement)