CERTYNEX IFRS ACADEMY

Kelvanis has taxable differences of 160,000 arising from accelerated tax depreciation and of 80,000 arising from a revaluation recognised in OCI. The rate falls from 27% to 22%; the differences are unchanged. Record the entry.

Differences arising in profit or loss: 160,000
Differences arising in OCI: 80,000
Previous rate (%): 27 %
New rate (%): 22 %

Line 1
Account Deferred tax liability
Line 2
Account Deferred tax income (profit or loss)
Line 3
Account Income tax on other comprehensive income