CERTYNEX IFRS ACADEMY

In Quervane's financial statements, the deferred tax liability relating to accelerated tax depreciation (360,000 of expected tax, reversing over twelve years) is shown at 241,000, an amount discounted at the group's borrowing rate. Where is the error?

In the classification: the liability should have been presented as current.

In the rate: the risk-free rate should have been used rather than the borrowing rate.

In the discounting: the liability must be shown at 360,000, without discounting.

In the existence of the liability: accelerated tax depreciation creates no temporary difference.