The leasing company Orbecque recognises accrued interest taxed only when received (case data). The related deferred tax liability was 40,000 at the start of the year; at the reporting date, the temporary difference reaches 208,000, at the expected rate of 25%. Record the change, entirely related to income recognised in profit or loss.
- Opening deferred tax liability
- 40,000
- Closing taxable temporary difference
- 208,000
- Expected rate (%)
- 25 %