CERTYNEX IFRS ACADEMY

A temporary difference arises on the initial recognition of an asset part of whose cost will never be deductible. What does its treatment depend on?

The amount of the difference, the exception covering only differences judged immaterial to the financial statements.

The tax rate in force at the acquisition date.

Management's intention to keep or sell the asset.

The nature of the transaction: business combination or not, effect on profits, equal differences.