CERTYNEX IFRS ACADEMY

In a business combination, the carrying amount of goodwill is lower than its tax base. What does the standard require?

A deferred tax asset recognised in all circumstances, in profit or loss for the period, without any review of recoverability.

A deferred tax liability, since the difference concerns goodwill.

A deferred tax asset, to the extent that taxable profit will probably allow the difference to be used.

No deferred tax: the goodwill exception works both ways.