CERTYNEX IFRS ACADEMY

The sports club Valfrimont collected 48,000 of subscriptions for next year, recognised as a liability; tax law (case data) taxed them on receipt. Sufficient taxable profit is probable. The accountant thinks there is 'nothing to do, as the tax has already been paid'. Which analysis should be adopted?

The accountant is right: revenue already taxed has no further tax consequence.

The liability has a nil tax base: a deductible difference of 48,000 and a deferred tax asset to be recognised.

The liability gives rise to a taxable difference of 48,000 and a deferred tax liability.

The deferred tax asset equals 48,000, the amount of tax already paid.