CERTYNEX IFRS ACADEMY

In Gorvanne's jurisdiction, distributed profits are taxed at 20% and retained profits at 30% (case data). At 31 December 20X5, the shareholders have not yet decided on any distribution; a dividend will be declared in April 20X6. How does Gorvanne measure its current and deferred tax at 31 December 20X5?

At 20%, as the distribution is certain.

At 25%, the average of both rates.

At 20% for deferred tax and 30% for current tax.

At 30%, the effect of the distribution being recognised with the dividend liability in 20X6.