CERTYNEX IFRS ACADEMY

Corbrival has a taxable temporary difference that will reverse half in 20X6 and half in 20X7. The law enacted before the reporting date sets the rate at 27% in 20X6 and then at 25% from 20X7. How does it measure the deferred tax liability?

The whole difference at the 20X6 rate, the first year of reversal.

The whole difference at the rate of the period ended, as the law is not yet applied.

The whole difference at the 20X7 rate, the most recent rate enacted.

Each portion at the rate enacted for its year of reversal.