CERTYNEX IFRS ACADEMY

In country Z, Valquessa (deferred tax liability 500,000) and Wenlandor (deferred tax asset 180,000), separate taxable entities, settle their tax net under a group regime which, under the tax law in the case, will end after 20X7. Reversals of Wenlandor's asset are expected in 20X6 and 20X9, those of Valquessa's liability in 20X8 and 20X9. How should the presentation be determined?

Offset in full, since both companies currently settle their tax net.

Draw up a schedule of reversals to check, period by period, whether offsetting is justified.

Never offset separate taxable entities, whatever the situation.

Offset only the 20X9 reversals, a year not covered by the group regime.