CERTYNEX IFRS ACADEMY

The Pelvanor group reviews its deferred tax balances at 31 December 20X5. Which pairs of deferred tax assets and liabilities must be offset?

The asset of a subsidiary in country M and the liability of a subsidiary in country N, both profitable.

The asset and liability of a single subsidiary, taxed by a single authority that allows current tax to be set off.

The asset and liability of a single subsidiary, whereas local law prohibits any set-off of current tax.

The balances of two subsidiaries in country M, separate taxable entities intending to settle net each year, with a right of set-off.