CERTYNEX IFRS ACADEMY

Ferlandine has recognised a restructuring provision of 150,000, deductible when paid next year (case data). Its future taxable profits are considered probable and sufficient. Its deferred tax schedule does not include this provision, on the grounds that 'the liability is certain'. What is the error?

None: a certain liability does not give rise to deferred tax.

The error relates only to the amount of the provision, not to deferred tax.

The provision, with a nil tax base, gives rise to a deductible difference and a deferred tax asset to be recognised.

The provision gives rise to a deferred tax liability, to be added to the schedule.