CERTYNEX IFRS ACADEMY

In Ulmerac's jurisdiction, distributed profits are taxed at a lower rate than retained profits. The board proposes a dividend in February 20X6, after the reporting date of 31 December 20X5; no dividend liability exists at the reporting date. Which rate does Ulmerac use at 31 December 20X5?

The rate for distributed profits on the portion proposed in February.

The rate for undistributed profits on the whole amount.

The rate for distributed profits on the whole amount, as distributions are customary.

An average of both rates weighted by the proposed dividend.