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Journal entryIntermediateVariant — group VG.IAS12.000028Published

Question · Reassessment of deferred tax assets

Dorsane had recognised no asset on its losses carried forward. At 31 December 20X6, its lasting return to profit makes it probable that 400,000 of these losses will be used (case assumption). Tax rate: 25%. Record the closing entry.

Losses that have become probably usable
400,000
Tax rate (%)
25 %
Your answer
  1. Line 1

    Account Deferred tax asset

  2. Line 2

    Account Deferred tax income (profit or loss)

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