CERTYNEX IFRS ACADEMY

Nastrelle's deferred tax liability includes 90,000 relating to revaluations recognised in OCI and 60,000 relating to accelerated tax depreciation. A rate cut reduces these amounts by 15,000 and 10,000 respectively. The accountant recognised 25,000 as deferred tax income in profit or loss. Where is the error?

None: a rate change is an event of the period, recognised in profit or loss.

The effect should have been deferred until the differences reverse.

The amount: the decrease should have been computed on the depreciation differences only.

The allocation: 15,000 had to be recognised in OCI, only 10,000 in profit or loss.