CERTYNEX IFRS ACADEMY

Pellanor writes down by 120,000 goodwill that is not tax deductible (nil tax base since the outset). The accountant records deferred tax income of 30,000 (25% rate) on the grounds that the taxable difference has decreased. Where is the error?

A deferred tax asset of 30,000 should have been recognised.

No income should be recognised: the reduction falls under the initial exception.

The income should have been computed at the rate expected when the difference reverses, not at the current 25% rate.

The income should have been offset against goodwill.