CERTYNEX IFRS ACADEMY

A warehouse of Lermantes has a carrying amount of 400,000 and a tax base of 280,000; the expected rate is 25%. The accountant recognises a deferred tax liability of 100,000. What is the error?

None: an asset's deferred tax is computed on its carrying amount.

The rate was applied to the carrying amount; it should have been applied to the difference of 120,000, i.e. 30,000.

The rate was applied to the tax base; the correct liability is 70,000.

A deferred tax asset was required, since the tax base is positive.