Gréolane holds an associate whose distributions it cannot control (facts of the case). This year, its share of profit, recognised in profit or loss, increases the taxable difference associated with its investment by 250,000; recovery is expected through dividends, taxed at 10% (data). Record the deferred tax entry.
- Increase in the taxable difference (share of profit)
- 250,000
- Expected tax on dividends (%)
- 10 %