Employee stock option deductibility affirmed as revenue expense when reflecting employer compensation liability and business incentive. An employee unit option scheme is a manager-granted unit option plan via an employee benefit trust, with managers' employees including all directors except independent directors. Accounting and regulatory guidance treat the accounting value of options as employee compensation, recording the difference between exercise price and market rate as personnel expense and a perquisite. ESOP expenditure is characterised as revenue expense incurred to incentivise employees and promote business output rather than create enduring company assets, and authorities recognise such expenditure as allowable business deduction when reflecting a definite legal liability.