CERTYNEX IFRS ACADEMY

Ruvenac has deductible differences of 240,000 that will reverse in 20X7. The rate is 30% in 20X5; a law enacted in 20X5 sets it at 32% from 20X7. The recoverable deferred tax asset was recognised at 72,000. Where is the error?

The rate: 32%, enacted for the year of reversal, should have been used; the asset is 76,800.

The principle: a deferred tax asset is never remeasured after initial recognition.

The amount: the asset should have been computed at the 31% average of the two years.

The date: the asset can only be recognised in 20X7, the year of reversal.