CERTYNEX IFRS ACADEMY

In 20X5, Lescurane reduced its deferred tax asset from 200,000 to 50,000. In 20X6, evidence makes it probable again that an asset of 170,000 will be recovered (case assumption). The CFO considers the 20X5 reduction 'final'. What is recognised in 20X6?

A reversal of 150,000, to return to 200,000.

A reversal of 120,000 directly in equity.

Nothing: a reduction is never reversed.

A reversal of 120,000 as deferred tax income, the asset rising to 170,000.