At 31 December 20X5, Solvara brings a solar plant into use and recognises a dismantling provision of 250,000, included in the cost of the plant (treatment in the case). The tax law (data) recognises neither this component nor the provision before payment. The current rate is 25%, but an enacted law sets at 22% the rate for the years in which the differences will reverse. Future taxable profit is probable. Record the deferred tax entry.
- Dismantling provision (and cost component)
- 250,000
- Rate enacted for the reversal years (%)
- 22 %