CERTYNEX IFRS ACADEMY

Mazelvane owes 260,000 of current tax, not yet paid. Its deferred tax movements, all arising from items in profit or loss, are an increase in the liability of 15,000 and a decrease in the asset of 4,000. Record the tax entries at the reporting date.

Current tax for the year: 260,000
Increase in deferred tax liability: 15,000
Decrease in deferred tax asset: 4,000

Line 1
Account Current tax expense
Line 2
Account Current tax liability

Line 1
Account Deferred tax expense
Line 2
Account Deferred tax liability
Line 3
Account Deferred tax asset