CERTYNEX IFRS ACADEMY

Uvrelac, a single taxable entity relating to a single authority that allows current tax to be set off, presents separately a deferred tax asset of 120,000 and a deferred tax liability of 410,000, 'for lack of a schedule showing that the reversals will be simultaneous'. Where is the error?

The conditions being met, offsetting is required: net liability of 290,000, with no schedule.

No error: without a reversal schedule, gross presentation is required.

The asset should have been offset against a current tax, not against the deferred liability.

Offsetting is only possible at consolidated group level, never in Uvrelac's separate financial statements.