In 20X5, Vauclerc incurs a tax loss of 400,000. Tax law (case data) allows it to carry the loss back against its 20X4 profit, taxed at 25%, up to the tax paid for 20X4, i.e. 130,000. What asset does it recognise in its 20X5 financial statements?
- 20X5 tax loss
- 400,000
- 20X4 tax rate (%)
- 25 %
- Tax paid for 20X4
- 130,000