CERTYNEX IFRS ACADEMY

Jasmolde holds bare land let as a car park, classified as investment property and measured at fair value. It measured deferred tax under the rules for taxing rents, rebutting the sale presumption on the ground that it has 'no intention of disposing of the land'. What is the error?

The rebuttal: non-depreciable land does not allow the sale presumption to be rebutted.

The classification: let land cannot be investment property.

The principle: investment property at fair value never gives rise to deferred tax.

The calculation: deferred tax should have been computed on the total fair value.