Lindarne retrospectively applies a new accounting policy that reduces the opening carrying amount of assets by 80,000, with no effect on their tax base; the opening balance of retained earnings is adjusted. A deductible difference results; the deferred tax asset is recoverable at a rate of 25%. Record the deferred tax entry for the opening adjustment.
- Decrease in opening carrying amounts
- 80,000
- Rate (%)
- 25 %