CERTYNEX IFRS ACADEMY

The Halvignon group revalues a vineyard (the group's accounting policy, case data) from 2,000,000 to 2,600,000; the tax base remains 2,000,000. The controller recognises no deferred tax, writing: 'the estate is strategic, it will never be sold'. What is the error?

None: with no intention to sell, the revaluation has no tax consequence.

The error relates only to the note, which must mention the absence of deferred tax.

The difference of 600,000 gives rise to deferred tax even with no intention to sell the vineyard.

Deferred tax would arise only if the revaluation were taxed immediately by the authorities.