CERTYNEX IFRS ACADEMY

At 31 December 20X5, a bill raising the rate from 25% to 29% is at first reading in the parliament of Vendrasse's jurisdiction. According to the case data, the opposition has tabled amendments on the rate, the final vote is scheduled for May 20X6 and, in this jurisdiction, only that vote makes the rate applicable. Vendrasse has deductible differences for which the deferred tax asset is recoverable. Which rate does it use?

25%, as the new rate is neither enacted nor substantively enacted at the reporting date.

29%, as the bill was tabled before the reporting date.

29%, out of prudence, as the higher rate increases the asset.

27%, the average of the current rate and the bill's rate.