CERTYNEX IFRS ACADEMY

Dorneval acquires a business, giving rise to goodwill of 420,000 that the tax law does not allow to be deducted. Which analysis is correct at the acquisition date?

A taxable difference of 420,000 exists, but its deferred tax liability is not recognised.

A taxable difference of 420,000 exists and its deferred tax liability is recognised, increasing goodwill.

A deductible difference of 420,000 gives rise to a deferred tax asset.

No temporary difference exists, since there is no tax base.