A rate cut reduces Esquerlle's net deferred tax liability by 36,000. The differences, arising partly from revaluations recognised in OCI and partly from items in profit or loss, can no longer be tracked individually. After a documented analysis, management judges that 40% of the net liability relates to the revaluations and uses this pro rata key. Compute the effects in OCI and in profit or loss.
- Decrease in the net liability due to the rate
- 36,000
- Share relating to revaluations (%)
- 40 %