CERTYNEX IFRS ACADEMY

Ursenac's accounting policy note states: 'Deferred taxes expected to reverse after more than five years are discounted when a reliable schedule is available; the others are not.' What is the problem?

The five-year threshold is too short: it should be ten years.

Only deferred tax assets may be discounted, not liabilities.

The note should state the discount rate used.

The policy itself: no discounting of deferred tax is permitted.