CERTYNEX IFRS ACADEMY

For an unusual asset, Corlanne's tax team cannot directly identify its tax base. What approach does IAS 12 suggest?

Use a nil tax base by default, which maximises deferred tax for prudence.

Go back to the fundamental principle: ask whether recovering the carrying amount will make future tax payments larger or smaller.

Use a tax base equal to the carrying amount by default and recognise no deferred tax.

Wait for the first tax audit to learn the authorities' position.