CERTYNEX IFRS ACADEMY

Valdérose is taxed in two countries. In country A, its instalments exceed the tax due by 15,000; in country B, it still owes 40,000. No legally enforceable right allows amounts owed to two different tax authorities to be set off (case data). What does it present at the reporting date?

A current tax asset of 15,000 and a current tax liability of 40,000.

A net current tax liability of 25,000.

A liability of 40,000 and an expense of 15,000 for the excess instalments.

A net current tax liability of 55,000.