CERTYNEX IFRS ACADEMY

Ternavel obtains an investment tax credit linked to the purchase of a production line. Which statement about the role of IAS 12 is correct?

IAS 12 sets the method of accounting for the credit, as a reduction of the year's current tax.

IAS 12 prohibits recognising any deferred tax in connection with an investment tax credit.

IAS 12 does not set the method of accounting for the credit, but deals with the temporary differences it may give rise to.

An investment tax credit is outside the scope of all existing IFRS Accounting Standards.