CERTYNEX IFRS ACADEMY

Gondrecourt has recognised a warranty provision of 80,000, deductible for tax only when repairs are made (case data). What temporary difference results?

A taxable difference of 80,000, as the carrying amount of the liability exceeds its tax base.

A deductible difference of 80,000, as the tax base of the liability is nil.

A deductible difference equal to 80,000 multiplied by the tax rate.

No difference: the provision will eventually be deducted, so there is no gap.