CERTYNEX IFRS ACADEMY

A new corporate income tax rate is enacted one month after the reporting date and significantly changes the entity's deferred taxes. How is it treated?

As a non-adjusting event, with disclosure if the effect is significant.

As an adjusting event, since the temporary differences already existed at the reporting date.

As a correction of an error of the year just ended, taken to opening equity.

It is ignored until it actually comes into force, with no disclosure in the notes.