CERTYNEX IFRS ACADEMY

Fréjac, which had not recognised an asset for its losses, acquires a business whose future profits, under the tax law of the case, will be able to absorb those losses. How does it account for the deferred tax asset that has become recoverable?

As a reduction of the goodwill of the combination, since it is the acquisition itself that makes the asset recoverable.

In the period of the combination, as deferred tax income, outside the accounting for the combination.

Directly in equity.

It is not recognised until the following year.