At the distributor Fenestrelle, provisions for returns, deductible when customers are refunded, are increasing. The deferred tax asset was 12,000 at the start of the year; the deductible difference reaches 65,000 at the reporting date, at the expected rate of 30%, sufficient taxable profit remaining probable. Record the change in profit or loss.
- Opening deferred tax asset
- 12,000
- Closing deductible difference
- 65,000
- Expected rate (%)
- 30 %