Bremoise recognises a fully recoverable deferred tax asset at 25% on deductible differences of 180,000 (accrued expenses recognised in profit or loss, deductible when paid). A law enacted before the reporting date raises the rate applicable on reversal to 27%. Record the adjusting entry at the reporting date.
- Deductible temporary differences
- 180,000
- Previous rate (%)
- 25 %
- New enacted rate (%)
- 27 %