CERTYNEX IFRS ACADEMY

Pélagrine holds listed shares measured at fair value, 860,000 at the reporting date; their cost, 700,000, remains their tax base and the gain will be taxed only on disposal (case data). Pélagrine intends to hold them for the long term. With an expected rate of 25%, which analysis should be adopted?

A taxable temporary difference of 160,000 and a deferred tax liability of 40,000.

No deferred tax: the shares will not be sold in the short term.

A deferred tax liability of 215,000, computed on fair value.

A deferred tax asset of 40,000, as fair value exceeds cost.