CERTYNEX IFRS ACADEMY

Morlaine has 500,000 of deductible differences. Its future taxable profit, excluding reversal deductions, is estimated at 300,000. It holds a building measured at cost (carrying amount equal to tax base, 1,000,000), used in a profitable business; three consistent appraisals put its disposal value at 1,400,000, and management documents probable recovery at that amount. What may it take into account for the deferred tax asset (rate: 25%)?

Only 300,000: an asset can never be counted above its carrying amount.

300,000 + 400,000 of probable excess recovery, i.e. an asset of 500,000 × 25% = 125,000.

An asset of 175,000, i.e. 700,000 × 25%.

An asset of 75,000, i.e. 300,000 × 25%.