Untitled - Saxo World

NOTES to the financial statements1 Accounting Policies · continuedWarrantsThe Board of Directors, the Board of Management andother employees have been granted warrants under differentprogrammes.The warrants are measured at fair value at the time of allocationand are recognised in the income statement underStaff costs and administrative expenses over the vestingperiod with a corresponding entry in equity.In connection with initial recognition of the warrants, theexpected number of exercisable warrants is estimated.Subsequent adjustments are made for changes in the estimate.The fair value of the warrants is estimated using the BlackScholes valuation method. The calculation takes into accountthe terms and conditions under which the warrantsare allocated.TaxIncome tax expense comprises current and deferred tax.Income tax expense is recognised in the income statementexcept to the extent that it relates to items recognised directlyin equity, in which case it is recognised in equity.Current tax is the expected tax payable on the taxable incomefor the year, using tax rates enacted or substantivelyenacted at the balance sheet date, and any adjustment totax payable in respect of previous years.Deferred tax is provided for temporary differences betweenthe carrying amounts of assets and liabilities for financialreporting purposes and the amounts used for taxationpurposes. Deferred tax is not recognised for Goodwill,that is not tax deductible. Temporary differences fromacquisitions related to assets or liabilities recognised at theacquisition date, such as recognition of Client relations,are included in the balance sheet at the acquisition date.Deferred tax is measured at the tax rates that are expectedto be applied to the temporary differences when theyreverse, based on the laws that have been enacted or substantivelyenacted by the reporting date.A deferred tax asset is recognised only to the extent thatit is probable that future taxable profits will be availableagainst which the asset can be utilised. Deferred tax assetsare reviewed at each reporting date and are reducedto the extent that it is no longer probable that the relatedtax benefit will be realised.ANNUAL REPORT 2009 · SAXO BANK · 51